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A Game of X’s and O’s
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Scoreboard
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X
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O
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Click Here if
X Wins
Click Here if
O Wins
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1
What are the three ranges of the aggregate
supply curve?
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Keynesian, Intermediate, and
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Classical
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The government introduces higher corporate
taxes. Which curve shifts, aggregate demand or
aggregate supply?
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The aggregate supply curve shifts.
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3
Aggregate supply falls; other things being
equal, what will happen to price level and real
output?
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A fall in real output and an increase in the
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price level.
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How would you show an economy running
at or near full employment?
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HomeThe AD curve intersects the AS curve as it
begins to slope.
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Consumers receive less income, but
companies benefit from increased capital.
Graph the situation.
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AD curve shifts to the left.
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AS curve shifts to the right.
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The aggregate demand curve is the sum of
the market demand curves for individual
goods and services. True or false?
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False.
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What happened to price level,
unemployment, and output?
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Price level: Increase
Unemployment: Increase
Output: Decrease
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What happened to price level,
unemployment, and output?
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Price level: Increases
Unemployment: No change
Real Output: No change
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An increase in aggregate demand, other
things being equal will always result in an
increase in real output. True or false?
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False; an increase in AD in the classical range
will not result in an increase in Real Output.
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