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Sort what fits each aggregate case

Exercise and reference answers

Questions
  1. Items
    1. Text
      SRAS is flat
      Matches the category
      Yes
    2. Text
      At potential GDP
      Matches the category
      No
    3. Text
      Deep in recession
      Matches the category
      Yes
    4. Text
      Prices barely move
      Matches the category
      Yes
    5. Text
      SRAS is vertical
      Matches the category
      No
    Category
    True in the Keynesian zone
  2. Items
    1. Text
      SRAS near vertical
      Matches the category
      Yes
    2. Text
      High unemployment
      Matches the category
      No
    3. Text
      Near potential GDP
      Matches the category
      Yes
    4. Text
      AD moves prices
      Matches the category
      Yes
    5. Text
      SRAS is flat here
      Matches the category
      No
    Category
    True in the neoclassical zone
  3. Items
    1. Text
      Confidence rises
      Matches the category
      Yes
    2. Text
      Oil prices jump
      Matches the category
      No
    3. Text
      Taxes are cut
      Matches the category
      Yes
    4. Text
      Higher spending
      Matches the category
      Yes
    5. Text
      Productivity gains
      Matches the category
      No
    Category
    Shifts aggregate demand to the right
Instructions
Tap each item that is true of the aggregate demand and supply case named above.

Explanation

_Source: OpenStax Principles of Macroeconomics for AP Courses, section 10.6 Keynes’ Law and Say’s Law in the AD/AS Model_
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