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C719
Module 6
| Question | Answer |
|---|---|
| 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 |