1. Changes in spending change*

Aggregate Demand

Aggregate Supply

Long-Run Aggregate Supply

2. Changes in the costs of production (resources, labor, etc) change*

Aggregate Demand

Aggregate Supply

Long-Run Aggregate Supply

3. Changes in the quantity or quality of resources change*

Aggregate Demand

Aggregate Supply

Long-Run Aggregate Supply

4. Level of unemployment at potential output:*

Less than 4%

4-6%

Greater than 6%

5. Gap created when producing below potential output:*

Recessionary

Inflationary

Contractionary

Expansionary

6. Gap created when producing above potential output:*

Recessionary

Inflationary

Contractionary

Expansionary

7. Policy that grows GDP:*

Recessionary

Inflationary

Contractionary

Expansionary

8. Policy that slows GDP:*

Recessionary

Inflationary

Contractionary

Expansionary

9. Cause of stagflation:*

An increase in AD

A decrease in AD

An increase in AS

A decrease in AS

10. What results when actual output is at potential output:*

inflation

recession

short-run equilibrium

long-run equilibrium