Question1Answer savedPoints out of 1.00Remove flagQuestion text

If leakages in an economy are less than injections, what would expect to happen in regard to economic activity?

Select one:

a.

contract

b.

expand

c.

hold steady

d.

increase in the short-run and decline in the long-run

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Question2Answer savedPoints out of 1.00Flag questionQuestion text

Economic activity declines during these two stages of the business cycle:

Select one:

a.

Stages 1 and 2

b.

Stages 2 and 3

c.

Stages 3 and 4

d.

Stages 1 and 4

e.

Stages 1 and 3

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Question3Answer savedPoints out of 1.00Flag questionQuestion text

Use this figure for questions 3-4

Q_E= equilibrium output

Q_F= full employment rate of output

Which option represents the AD shortfall?

Select one:

a.

horizontal distance between A to B

b.

horizontal distance betweenB to C

c.

horizontal distance betweenA to C

d.

vertical distance between A to B

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Question4Answer savedPoints out of 1.00Flag questionQuestion text

Which option represents the GDP gap (aka, recession gap)?

Select one:

a.

horizontal distance between A to B

b.

horizontal distance between B to C

c.

horizontal distance between A to C

d.

vertical distance between A to B

Aggregate Supply Aggregate Demand (new) Aggregate Demand