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Question: what is the shape of the intermediate zone of the...

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What is the shape of the intermediate zone of the AD-AS curve?

horizontal
upward-sloping
downward-sloping

When does the GDP gap shrink?

It shrinks as the government reduces the budget deficit through discretionary fiscal policy.
It shrinks as the economy recovers from recession.
It shrinks as the economy is contracting with government intervention.

Since the change in GDP is a greater change than in the expenditure model the multiplier has a value ________.

greater than one
equal to one

A rightwards shift of the AD curve along the Neoclassical portion of the aggregate supply curve will result in

a decrease in the price level.
an increase in the price level.
no effect on the price level.
less than one
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