Join the Dojo for Unlimited Access
Ultimate Flashcard Review
Video
Fiscal Policy & Long-Run Self-Adjustment
Key Concepts to Understand
Question 1 of 3
Fiscal policy impacts which of the following curves on the AD/AS graph?
SRAS
LRAS
AD
Money supply
Practice Questions: Test Your Understanding
Apply what you've learned with these practice questions. These questions test your understanding of the key concepts.
Question 1 of 3
An economy's actual real GDP is currently $500 billion, while its potential real GDP (full employment output) is estimated to be $550 billion. Based on this information, which of the following is most likely true regarding the unemployment rate?
The unemployment rate is equal to the natural rate of unemployment.
The unemployment rate is below the natural rate of unemployment.
The unemployment rate is above the natural rate of unemployment.
The unemployment rate is zero.
The relationship between the output gap and unemployment cannot be determined.
Key Takeaways
- 📊Master the fundamentals: Understanding these core concepts is essential for success in AP Economics.
- ✅Practice makes perfect: Use the interactive exercises and practice questions to reinforce your understanding.