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f an economy is producing at point Ei, then the figure below shows an economy experiencing a(n) __________ gap, which a government can fix by
f an economy is producing at point Ei, then the figure below shows an economy experiencing a(n) __________ gap, which a government can fix by ___________. LRAS, SRAS, and AD showing an inflationary gap Graph shows aggregate demand and aggregate supply. Short run equilibrium is to the right of long run aggregate supply. Graph shows aggregate demand increasing from ADf to ADi Select the correct answer below: recessionary; raising taxes recessionary; lowering taxes inflationary; raising taxes inflationary; lowering taxes
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