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

What type of the GDP gap is observed in Slovenia?

 

Hint

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

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

 

Hint

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

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 8.

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

 

Hint

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

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 4.

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

 

Hint