Question: Starting from long-run equilibrium, an increase in aggregate demand will cause a. an inflationary gap in the short run. b. a recessionary gap in the

Starting from long-run equilibrium, an increase in aggregate demand will cause

a. an inflationary gap in the short run.

b. a recessionary gap in the short run.

c. an inflationary gap in the short run and long run.

d. a recessionary gap in the short run and long run.

e. neither an inflationary nor a recessionary gap in the short run or the long run.

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