question archive Question 11) _______________ represents how much output a society has the potential to produce Group of answer choices Short run aggregate supply Long run aggregate supply aggregate demand Long run aggregate demand Flag this Question Question 12 2 pts If AD increases, prices will _______ and real GDP will ________ Group of answer choices decrease; increase increase; increase be unchanged; increase be unchanged; be unchanged Flag this Question Question 13 2 pts Referring to the economy represented in the above figure, an increase in the aggregate demand will likely cause Group of answer choices short-run aggregate supply (shown as "AS"); increase price levels to increase and real GDP to increase price levels to decrease and real GDP to decrease price levels to increase and real GDP to decrease price levels to decrease and real GDP to increase Flag this Question Question 14 2 pts Referring to the economy represented in the above figure, a _________ of _______ exists
Question 11) _______________ represents how much output a society has the potential to produce Group of answer choices Short run aggregate supply Long run aggregate supply aggregate demand Long run aggregate demand Flag this Question Question 12 2 pts If AD increases, prices will _______ and real GDP will ________ Group of answer choices decrease; increase increase; increase be unchanged; increase be unchanged; be unchanged Flag this Question Question 13 2 pts Referring to the economy represented in the above figure, an increase in the aggregate demand will likely cause Group of answer choices short-run aggregate supply (shown as "AS"); increase price levels to increase and real GDP to increase price levels to decrease and real GDP to decrease price levels to increase and real GDP to decrease price levels to decrease and real GDP to increase Flag this Question Question 14 2 pts Referring to the economy represented in the above figure, a _________ of _______ exists
Subject:EconomicsPrice: Bought3
Question 11) _______________ represents how much output a society has the potential to produce
Group of answer choices
Short run aggregate supply
Long run aggregate supply
aggregate demand
Long run aggregate demand
Flag this Question
Question 12
2 pts
If AD increases, prices will _______ and real GDP will ________
Group of answer choices
decrease; increase
increase; increase
be unchanged; increase
be unchanged; be unchanged
Flag this Question
Question 13
2 pts
Referring to the economy represented in the above figure, an increase in the aggregate demand will likely cause
Group of answer choices
short-run aggregate supply (shown as "AS"); increase
price levels to increase and real GDP to increase
price levels to decrease and real GDP to decrease
price levels to increase and real GDP to decrease
price levels to decrease and real GDP to increase
Flag this Question
Question 14
2 pts
Referring to the economy represented in the above figure, a _________ of _______ exists.
Group of answer choices
recessionary gap; $0.5 Trillion
recessionary gap; $10 Trillion
expansionary gap; $0.5 Trillion
expansionary gap; $10 Trillion
Flag this Question
Question 15
2 pts
The intersection of __________ and __________ predicts actual output.
Group of answer choices
LRAS and SRAS
SRAS and AD
LRAS and AD
Flag this Question
Question 16
2 pts
If potential output increases, prices will _______ and real GDP will ________
Group of answer choices
decrease; increase
increase; increase
be unchanged; increase
be unchanged; be unchanged
Flag this Question
Question 17
2 pts
Long Run Aggregate Supply Represents _________ supply while Short Run Aggregate Supply represents __________ supply.
Group of answer choices
potential; actual
potential; potential
actual; actual
actual; potential
Flag this Question
Question 18
2 pts
If a country is in a recessionary gap and impliments an expansionary fiscal policy, what would be the most likely effect on the country's unemployment rate?
Group of answer choices
The unemployment rate would stay the same.
The unemployment rate is not related to fiscal policy.
The unemployment rate would increase.
The unemployment rate would decrease.
Flag this Question
Question 19
2 pts
When comparing a $100 billion increase in government expenditure to a $100 billion decrease in personal income taxes, the effect of the increase in government expenditure on aggregate demand is
Group of answer choices
equal to the effect of the tax decrease.
negative whereas the effect of the tax decrease is positive.
positive whereas the effect of the tax decrease is negative.
less than the effect of the tax decrease.
greater than the effect of the tax decrease.
Flag this Question
Question 20
2 pts
To eliminate a recessionary gap, the government can ________ government expenditures and/or ________ taxes.
Group of answer choices
decrease; decrease
increase; increase
increase; not change
increase; decrease
decrease; increase
