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The graph below shows the AD-AS diagram for Brazil.

What type of the GDP gap is observed in Brazil?

 

The graph below shows the AD-AS diagram for Spain.

What type of fiscal policy should the government of Spain be implementing to bring the economy to the long-run equilibrium?

 

The graph below shows the AD-AS diagram for Slovenia.

How big is the recessionary gap?

 

The graph below shows the AD-AS diagram for the US.

Suppose that the government expenditure multiplier is equal to `10`.

By how much should the government increase government expenditures (G) in order to close this recessionary gap?

 

The graph below shows the AD-AS diagram for Brazil.

How big is the inflationary gap?

 

The graph below shows the AD-AS diagram for Norway.

Suppose that the government expenditure multiplier is equal to `0.7`.

By how much should the government decrease government expenditures (G) in order to close this inflationary gap?