un equilibrium. - The economy pictured in the given figure has a(n) mbination of inflation and output indicated by point gap with a short-run equilibrium LRAS fla tion Azpreyate SRAS AD Output A. recessionary; A B. ręcessionary; B C. recessionary; C D. expansionary; A .

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The theory of absolute advantage was given by Adam Smith in the year 1776.