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AP® Macroeconomics

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Moderate

Recessionary Gap Represented on AD-AS Graph

APMACR-B4V5EQ

An aggregate demand-aggregate supply graph representing the economy with a recessionary gap is illustrated by

A

an upward sloping aggregate demand curve intersecting the vertical long-run aggregate supply curve to the right of the short-run aggregate supply curve.

B

an upward sloping aggregate demand curve intersecting the vertical long-run aggregate supply curve to the left of the short-run aggregate supply curve.

C

a downward sloping long-run aggregate supply curve intersecting the vertical short-run aggregate supply curve to the left of the aggregate demand curve.

D

a downward sloping aggregate demand curve intersecting the vertical short-run aggregate supply curve to the left of the upsloping long-run aggregate supply curve.

E

a downward sloping aggregate demand curve intersecting an upsloping aggregate supply curve to the left of the vertical long-run aggregate supply curve.