Glendale Community College » Economics » Econ 102 - Principles of Macroeconomics » Winter 2021

Question #1

The horizontal axis on the AD-AS diagram is

A. real GDP

B. inflation

C. price level

D. quantity

Question #2

Potential GDP is also the

A. Short Run AD

B. Long Run AD

C. Long Run AS

D. Short Run AS

Question #3

Which of the following will shift the aggregate demand curve?

A. changes in input prices

B. changes in technology

C. changes in natural resources

D. changes in government spending

Question #4

When the AS curve shifts right

A. price levels fall and real GDP increases

B. price levels fall and real GDP decreases

C. price levels rise and real GDP decreases

D. price levels rise and real GDP increases

Question #5

When small changes to the aggregate demand curve lead to high inflation, the economy is in the

A. Intermediate zone

B. Potential zone

C. Neoclassical zone

D. Keynesian zone