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AD and SRAS quiz - The price level will Real GDP will and...

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square6 AD AND SRAS QUIZ Name __________________________ Section _________ Directions: For each question, draw an economy in equilibrium, labeling the initial equilibrium price level and equilibrium quantity of Real GDP. Then shift the appropriate curve and label the new equilibrium price and equilibrium quantity. Next, fill in the blanks to describe what happened. 1. There is a decrease in wealth. The price level will _______________, Real GDP will _______________, and the unemployment rate will_______________. 2. Consumers start to expect lower future incomes. The price level will _______________, Real GDP will _______________, and the unemployment rate will _______________. 3. There is a decrease in personal income taxes.
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Unformatted text preview: The price level will _______________, Real GDP will _______________, and the unemployment rate will _______________. 4. There is an adverse supply shock. The price level will _______________, Real GDP will _______________, and the unemployment rate will _______________. 5. There is an increase in foreign real national income. The price level will _______________, Real GDP will _______________, and the unemployment rate will _______________. 6. What will happen if there is a decrease in interest rates at the same time that there is an increase in wage rates, and AD shifts by more than SRAS shifts? The price level will _______________, Real GDP will _______________, and the unemployment rate will _______________....
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