If the economy below is currently producing at point Ei, then the economy is experiencing a(n) _____________ gap, which can be fixed by using _________. 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; expansionary fiscal policy inflationary; expansionary fiscal policy recessionary; contractionary fiscal policy inflationary; contractionary fiscal policy