1. A rise in interest rates, when the derivative A_p/ris very small, results in a graph where the A_p line is

a.Very steep, as is the IS curve

b.Very flat, as is the IS curve

c.Very steep while the IS curve would be very flat

d.Very flat while the IS curve would be very steep

1.Which of the following would be the best description of a recessionary gap in the simple expenditure model?

a.The area under the Ep line between full employment and actual Ye

b.The area under the 45-degree line between full employment and actual Ye

c.The horizontal distance between Ye and Yn

d.The vertical distance between Ap at Ye and Ep full employment