Exhibit 16-2
-In Exhibit 16-2,the aggregate demand in the economy is represented by AD₀ and the short run aggregate supply by SRAS₁₂₀.If an active policy approach is followed to eliminate the recessionary gap,the economy will move from its current short-run equilibrium to _______.

Question

Exhibit 16-2 Exhibit 16-2 -In Exhibit 16-2,the aggregate demand in the economy is represented by AD<sub>0</sub> and the short run aggregate supply by SRAS<sub>120</sub>.If an active policy approach is followed to eliminate the recessionary gap,the economy will move from its current short-run equilibrium to _______. A) A B) B C) F D) D E) E

Exhibit 16-2 -In Exhibit 16-2,the aggregate demand in the economy is represented by AD<sub>0</sub> and the short run aggregate supply by SRAS<sub>120</sub>.If an active policy approach is followed to eliminate the recessionary gap,the economy will move from its current short-run equilibrium to _______. A) A B) B C) F D) D E) E

-In Exhibit 16-2,the aggregate demand in the economy is represented by AD₀ and the short run aggregate supply by SRAS₁₂₀.If an active policy approach is followed to eliminate the recessionary gap,the economy will move from its current short-run equilibrium to _______.

Quizplus · Accepted Answer

An active policy approach to eliminate a recessionary gap typically involves increasing aggregate demand, which would shift the AD curve to the right, moving the economy to a new equilibrium point such as E.

Exhibit 16-2 -In Exhibit 16-2,the Aggregate Demand in the Economy Is Represented