Economics and Classroom Fun Quiz

What is a recessionary gap characterized by?

• An increase in government spending

• Full employment with 0% unemployment

• Real output below full employment GDP

• Real output above full employment GDP

Which group of economists believes in government intervention to address a recessionary gap?

• Supply-side economists

• Keynesian economists

• Monetarist economists

• Classical economists

How do classical economists propose to resolve a recessionary gap?

• By increasing government spending

• By allowing market forces to adjust

• By implementing strict monetary policies

• By reducing taxes

What happens when wages and resource prices are flexible in a recessionary gap?

• Unemployment rates rise

• Aggregate demand shifts to the left

• Aggregate supply shifts to the right

• Price levels increase

In the classroom story, what game did Kyle suggest playing?

• Pictionary

• Heads Up Seven Up

• Sardines

• Four Corners