Starting from long-run equilibrium, an increase in aggregate demand will cause a. an inflationary gap in the
Question:
Starting from long-run equilibrium, an increase in aggregate demand will cause
a. an inflationary gap in the short run.
b. a recessionary gap in the short run.
c. an inflationary gap in the short run and long run.
d. a recessionary gap in the short run and long run.
e. neither an inflationary nor a recessionary gap in the short run or the long run.
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