Suppose an economy is in long-run equilibrium at the full-employment level of output. If government spending then increases
(A)an inflationary gap is created because the aggregate demand curve shifts to the right (B)an inflationary gap is created because the aggregate supply curve shifts to the right (C)an inflationary gap is created because potential GDP shifts to the left (D)a recessionary gap is created because the aggregate supply curve shifts to the left
A