Question

1. when rgdp in the short run is greater than potential gdp, the economy * 1 point is operating in an inflationary gap.

a. true
b. false

1. unemployment that occurs as a result of fluctuations in real gdp is * 1 point called cyclical unemployment.

a. true
b. false

1. a decrease in the price of oil is going to lead to increase in aggregate * 1 point supply (as), which means it shifts up to the left.

a. true
b. false

Explanation:

• For question 6: When short - run RGDP exceeds potential GDP, there is excess demand, leading to an inflationary gap.
• For question 7: Cyclical unemployment is indeed caused by fluctuations in real GDP during business cycles.
• For question 8: A decrease in oil price lowers production costs, increasing aggregate supply which shifts to the right, not up to the left.

Answer:

1. A. True
2. A. True
3. B. False