Question 1
In the AD-AS model, what does the intersection of the aggregate demand (AD) curve and the short-run aggregate supply (SRAS) curve represent?
Question 2
Which of the following best describes a recessionary gap in the AD-AS model?
Question 3
If the economy is experiencing an inflationary gap, which of the following is true?
Question 4
Which of the following would most likely cause the aggregate demand curve to shift to the right?
Question 5
What is the long-run effect on output when the economy self-adjusts from a recessionary gap in the AD-AS model?
