Question 58 1 pts Which of these changes is observed in an economy when a recess

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Question 58 1 pts Which of these changes is observed in an economy when a recessionary gap is closed in the long run? An increase in the inflation rate and a decrease in the unemployment rate An increase in the level of output and a decrease in the price level An increase in both the rate of output and the price level O A decrease in both the rate of output and the price level O A decrease in the inflation rate and an increase in the unemployment rate Question 59 1 pts When resource prices are negotiable, the long-run aggregate supply curve is represented by an upward-sloping line O a downward-sloping line O a vertical line at potential output. a horizontal line at the actual price level. manuelcollege.instructure.com/courses/47lquizzes 1304/take?preview 1 Quiz BU 200 Exam 4 Chapters 23-24 a horizontal line at the expected price level.

Explanation / Answer

1- whgen a recessionary gap is closed it means that the output must have increased to potential level, that can be done by increasing the aggregate demand , this leads to increase in output and price elevel also,

so answer here is c

2- when the resources are price negotiable the long run supply curve looks like a vertical line that is parallel to the price axis, at the potential level of output.

so answer is c

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