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

What type of the GDP gap is observed in Spain?

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

What type of fiscal policy should the government of Norway 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 Spain.

Suppose that the government expenditure multiplier is equal to `9`.

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 Canada.

How big is the inflationary gap?

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

Suppose that the government expenditure multiplier is equal to `0.85`.

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

Box 1: Select the best answer

Box 2: Select the best answer

Box 3: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172
Enter DNE for Does Not Exist, oo for Infinity

Box 4: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172
Enter DNE for Does Not Exist, oo for Infinity

Box 5: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172
Enter DNE for Does Not Exist, oo for Infinity

Box 6: Enter your answer as an integer or decimal number. Examples: 3, -4, 5.5172
Enter DNE for Does Not Exist, oo for Infinity