Lumen OHM Assessment

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

What type of the GDP gap is observed in Slovenia?

The economy is facing an inflationary gap.
There is no recessionary or inflationary gap.
The economy is facing a recessionary gap.

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

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

The government should implement contractionary fiscal policy.
The government should implement expansionary fiscal policy.
There is no need for either contractionary or expansionary fiscal policy.

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

What type of fiscal policy should the government of Mexico implement to bring the economy to the long-run equilibrium?

There is no need for either contractionary or expansionary monetary policy.
The FED should implement expansionary monetary policy.
The FED should implement contractionary monetary policy.

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