76. Starting from potential output, if consumer confidence decreases and consumers decide to spend
less, then this will shift the ______ curve to the left and generate ______.
A. aggregate demand; a recessionary output gap
B. aggregate supply; a recessionary output gap
C. aggregate demand; an expansionary output gap
D. aggregate supply; an expansionary output gap
77. Graphically, short-run equilibrium occurs at the intersection of the aggregate demand curve and:
A. the aggregate supply curve and potential output.
B. the planned aggregate expenditure line.
C. the aggregate supply curve.
D. potential output.
78. When the economy is in short-run equilibrium, there will be ______ output gap.
A. no
B. only a recessionary
C. either a recessionary or an expansionary
D. only an expansionary
79. When actual output equals potential output and the inflation rate is equal to the expected rate of
inflation, the economy is said to be in ______ equilibrium.
A. long-run
B. recessionary
C. expansionary
D. short-run
80. Graphically, long-run equilibrium occurs at the intersection of the aggregate demand curve and:
A. the aggregate supply curve and potential output.
B. the planned aggregate expenditure line.
C. the aggregate supply curve.
D. potential output.
81.
Refer to the figure below. The economy pictured in the figure has a(n) ______ gap with a short-run equilibrium indicated by point ___.
A. recessionary; A
B. recessionary; B
C. recessionary; C
D. expansionary; A
82. Refer to the figure below. The current level of GDP in this economy is ______; the potential level
of GDP is ______.
A.
Y1; Y1
B.
Y2; Y2
C.
Y1; Y2
D.
Y2; Y1
83. Refer to the figure below. Long-run equilibrium in this economy:
A. will be impossible to achieve.
B. could occur if AD shifts downward to the left.
C. could occur if AS shifts downward and to the right.
D. will occur only if AD shifts upward to the right.
84. Refer to the figure below. The economy pictured in the figure has a(n) ______ gap with a short-run
equilibrium combination of the price level and output indicated by point ___.
A. recessionary; A
B. recessionary; B
C. expansionary; C
D. expansionary; A