Equilibrium GDP Table Question

Choose the correct type of economy:

• private economy.

• private open economy.

• mixed closed economy.

• mixed open economy.

Refer to the table. Equilibrium GDP is

• $40.

• $70.

• $100.

• $130.

Refer to the table. If the full-employment real GDP is $100, the

• inflationary expenditure gap is $30.

• inflationary expenditure gap is $10.

• recessionary expenditure gap is $30.

• recessionary expenditure gap is $10.

If the full-employment real GDP is $40, the

• A) inflationary expenditure gap is $30.

• B) inflationary expenditure gap is $10.

• C) recessionary expenditure gap is $30.

• D) recessionary expenditure gap is $10.

Which one of the following would not shift the aggregate demand curve?

• a change in the price level

• a change in consumer confidence

• a change in government spending

• a change in net exports

Which of the following would most likely shift the aggregate demand curve to the right?

• an increase in stock prices that increases consumer wealth

• a decrease in government spending

• a decrease in consumer confidence

• an increase in interest rates

Which of the following would most likely reduce aggregate demand (shift the AD curve to the left)?

• an appreciation of the U.S. dollar

• a decrease in government spending

• an increase in consumer confidence

• a reduction in interest rates

The immediate-short-run aggregate supply curve represents circumstances where _________.

• both input and output prices are fixed.

• only output prices are fixed, but input prices are flexible.

• both input and output prices are flexible.

• only input prices are fixed, but output prices are flexible.

The immediate-short-run aggregate supply curve is _________?

• Horizontal

• Vertical

• Upward sloping

• Downward sloping

The aggregate supply chain shows the various amounts of real output that businesses will produce at each price level.

• True

• False