Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hello, my question is: If the short run AS curve shifts to the left, this creates a _________ price level in the short run and
Hello, my question is:
If the short run AS curve shifts to the left, this creates a _________ price level in the short run and a(n)________ gap in the short-run.
A) higher; inflationary
B) higher: recessionary
C) lower; recessionary
D) lower; inflationary
I think the answer is A because you shift the AS to the left in order to close an "inflationary Gap" however many people say its recessionary. Can you please confirm with me?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started