1. In the horizontal range of the SRAS curve,
a. the price level is constant
b. the classical model assumption apply
c. real GDP is supply-determined
d. full employment exists
2. In the classical medel, if AD shifts to the right, then
a. real GDP rises
b. the price level rises
c. real GDP falls
d. the price level is unaffected
3. In the Keynesian of SRAS, if AD shifts to the left, then
a. the price level falls
b. real GDP is unchanged
c real GDP falls
d. the price level rises
4. If unused capacity and significant unemployment exists, then the SRAS curve is
a. vertical over a broad range
b. downward sloping
c. horizontal or slightly upward sloping
d. the same as the LRAS curve
5. Both unemployment and the price level rise if the
a. AD curve shifts to the right
b. AD curve shifts to the left
c. SRAS curve shifts to the left
d. SRAS curve shifts to the right