a short run equilibrium occurs at a level of output below the full-employment output, then there will be a(n)_______________, and (in the absence of government policy intervention) during the transition to the long run equilibrium output will ____________. a. inflationary gap; rise. b. inflationary gap; decrease. c. recessionary gap; rise. d. recessionary gap; decrease.

a short run equilibrium occurs at a level of output below the full-employment output, then there will be a(n)___, and (in the absence of government policy intervention) during the transition to the long run equilibrium output will . a. inflationary gap; rise. b. inflationary gap; decrease. c. recessionary gap; rise. d. recessionary gap; decrease.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter14: Aggregate Demand And Supply

Section14.A: The Self Correcting Aggregate Demand And Supply Model

Problem 18SQ

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