Refer to the accompanying figure.
Starting from long-run equilibrium at point C, an adverse inflation shock that increases inflation from ? to ?1 will lead to a short-run equilibrium at point ________ creating ________ gap.
A. B; a recessionary
B. A; a recessionary
C. B; an expansionary
D. A; an expansionary
Answer: B
Economics
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Answer the following statement true (T) or false (F)
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