- Download the worksheet to save time writing
- Start solving the practice problems
- If you're stuck, watch the video solutions
- See your summary to get more insights
During an economic expansion in the dynamic AD-AS model, how do aggregate demand and aggregate supply interact to affect price levels?
Why is the dynamic AD-AS model considered a more realistic representation of economic conditions than the static AD-AS model?
If a country experiences technological advancements and an increase in its labor force, what is the likely effect on the long-run aggregate supply curve in the dynamic AD-AS model?
What is potential GDP?
How might expansionary fiscal policy interact with the dynamic AD-AS model to influence economic outcomes?
Which of the following is NOT a factor that typically causes aggregate demand to increase year over year?
How might contractionary monetary policy interact with the dynamic AD-AS model to influence economic outcomes?
In the dynamic AD-AS model, if both the short-run and long-run aggregate supply curves shift to the right due to economic growth, what happens to the equilibrium GDP and price level?
If a country invests heavily in education and infrastructure, what is the likely effect on the long-run aggregate supply curve in the dynamic AD-AS model?
Why do the static assumptions of the standard AD-AS model fail to predict economic behavior during recessions?