A country currently faces a recessionary gap. Assuming no change in government policy (e.g., fiscal or monetary policy), which graph best depicts the economy's response
A country currently faces a recessionary gap. Assuming no change in government policy (e.g., fiscal or monetary policy), which graph best depicts the economy's response as it moves towards its long-run equilibrium? PA AD 0 AD_1 AS 0 AS 0 AD_1 (1) (2) AD 0 Y >Y PA AS 1 AS 0 (3) (4) AS 0 AS_1 AD 0 AD 0 Y >Y
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