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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 |