Question: Please answer these questions Question 8 Price LRAS level SRAS P2 b a d AD Y, Yo Real GDP per year The economy is initially
Please answer these questions


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Question 8 Price LRAS level SRAS P2 b a d AD Y, Yo Real GDP per year The economy is initially at output level Y1 and there is [ Choose ] the short-run aggregate supply curve to shift to the left. the aggregate demand curve to shift to the left. Output is above or below potential? recessionary gap raise interest rates. inflationary gap Interventionist fiscal policy would do what to close the gap? establish a consumption tax to encourage savings. the short-run aggregate supply curve to shift to the right. below increase government spending A nonintervention policy would result in the restoration of above potential output by allowing the D Question 9 Price LRAS level SRAS SRASI b W P 3 18 APR 12 & % A 9 0 @ 8 6Question 10 $12,000 dia. 10,000 8.000 Aggregate 6,000 expenditures ling . . . . . . Aggregate expenditures per year (billions of base- Xemiah Luoma
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