The graph below shows the AD-AS diagram for Spain. All numbers are in billions. 1. What is the size of real GDP in the short-run equilibrium? answer "a". 2. What is the price level in the short-run equilibrium? answer "b". 3. What is the level of Potential GDP in Spain? answer "c"
The graph below shows the AD-AS diagram for Spain. All numbers are in billions. 1. What is the size of real GDP in the short-run equilibrium? answer "a". 2. What is the price level in the short-run equilibrium? answer "b". 3. What is the level of Potential GDP in Spain? answer "c"
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The graph below shows the AD-AS diagram for Spain. All numbers are in billions.
1. What is the size of real
2. What is the price level in the short-run equilibrium? answer "b".
3. What is the level of Potential GDP in Spain? answer "c".
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16) The short run aggregate supply (SRAS) curve is a(n).
long run aggregate supply (LRAS) curve is a(n)
between wages and prices.
vertical; upwardly sloping
✔upwardly sloping; vertical
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horizontal; upwardly
sloping
vertical; horizontal
17) Consider if consumers increase spending and if the aggregate supply curve remains
unchanged, then what will happen to aggregate demand and real GDP?
✔ The aggregate demand will increase and real GDP will increase.
The aggregate demand will increase and real GDP will remain
the same.
The aggregate demand will decrease and real GDP will remain
the same.
The aggregate demand will decrease and real GDP will decrease.
A decrease in net exports.
An increase in net exports
A decrease in business
investment.
An increase in net imports
18) All things being equal, which event will shift the aggregate demand (AD) curve to the (5pts)
right?
curve due to sticky wages and the (4pts)
curve due to the flexibility and a balance
19) The graph below shows the AD-AS diagram for Spain. All numbers are in
billions.
1. What is the size of real GDP in the short-run equilibrium? answer "a".
2. What is the price level in the short-run equilibrium? answer "b".
AD;
right
3. What is the level of Potential GDP in Spain? answer "c".
Image gallery
(click for full size)
☐AS;
right
20) When an economy's output decrease and the price level decrease, the
shifted to the
☐AS: left
☐AD; left
> Exit this Test
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(15pts)
Test Pages
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curve has
(5pt:
(5pt
1100
1000-
Price Level
900
800
AD
700-
600-
500-
SRAS
400-
300-
200-
100-
Next ▶
100
i
200 300
Real GDP
400
500
m
LRAS
600
X
C Chegg Search
700 800 900 1000
W
110
CLOSE X
444
X
(8)
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3:12 PM
12/3/2022
6
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