1. When actual output (where AD and SRAS intersect) is less than LRAS, this is a(n) _____ gap. (inflationary or recessionary?)

2. A inflationary gap is when actual output (where AD and SRAS intersect) is _____ less than  LRAS. (greater than, or less than?)

3. A fall in government purchases will cause _____ (aggregate demand/short run aggregate supply) to _____ (shift in/shift out).

Answer rating: 100% (QA)

Solution 1 When actual output where AD and SRAS intersect is less than LRAS this ... View the full answer