If the SRAS and AD curves intersect at an output level to the right of the LRAS curve,then
A) there is an expansionary gap,with Y > Y*.
B) there is a recessionary gap,with Y < Y*.
C) there is an expansionary gap,with Y < Y*.
D) there is a recessionary gap,with Y > Y*.
E) there is no output gap and Y = Y*.
Correct Answer:
Verified
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