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C719

Module 6

QuestionAnswer
The total spending on all goods and services in the economy. Aggregate Demand
The quantity of total real output supplied at every price level. Aggregate Supply
Aggregate Demand is _________________ sloping. Downward
An increase in total spending would shift ______________________. AD to the right
A decrease in total spending would shift ______________________. AD to the left
An increase in total production would shift ______________________. AS to the right
A decrease in total production would shift ______________________. AS to the left
What is on the vertical axis of the AS/AD graph? Price level
What is on the horizontal axis of the AS/AD graph? Real GDP
Long-run Aggregate Supply has a ______________ slope. Vertical
Short-run Aggregate Supply is _________________ sloping. Upward
LRAS indicates the level of ________________ GDP. Potential
Potential GDP is where the economy is at ____________________________. Full employment
When AD and SRAS cross to the left of LRAS Recessionary Gap
When AD and SRAS cross to the right of LRAS Inflationary Gap
Created by: chawk69
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