ECON 201 Study Guide - Quiz Guide: Aggregate Supply, Potential Output, Aggregate Demand

• School: University of Maryland
• Department: Economics
• Course: ECON 201
• Professor: All

Document Summary

Written: feb 2, 2017 1:30 pm - feb 2, 2017 2:12 pm. Economic production has fallen to less than full potential due to inadequate incentives for firms to produce. The duration of this economic condition will likely be: a) indefinite b) long-term c) short-term d) unknown. Question 2: the __________________ in an ad/as diagram is most relevant to keynes"s law. a) as curve b) ad curve. 1 / 1 point c) steep portion of the as curve d) flat portion of the as curve. Aggregate supply curves are ________________________ for low levels of output, and. ____________________________ for high levels of output. a) relatively steep; remain steep b) relatively flat; remain flat c) relatively flat; relatively steep d) relatively steep; relatively flat. In an ad/as model, the point where the economy has excess capacity is called the: a) crossing point of the potential gdp line.