The AD-AS model depicts a self-correcting economy.This means that the price level in the model adjusts automatically in response to a(n) ___________ gap,so as to eliminate the ___________ gap in the long run,without requiring any help from government policies.
A) output;output
B) recessionary;recessionary
C) expansionary;expansionary
D) recessionary;expansionary
E) expansionary;recessionary
Correct Answer:
Verified
Q70: The economy depicted in the diagram below
Q71: According to the AD-AS model,the economy depicted
Q72: An economy characterized by the AD equation
Q73: For the economy depicted in the diagram
Q74: The economy depicted in the diagram below
Q76: An economy characterized by the AD equation
Q77: For the economy depicted in the diagram
Q78: An economy is characterized by the AD
Q79: An economy is characterized by the AD
Q80: 
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