# Calculating the Size of a Contractionary Gap

Instructions:

question 1 of 3

### What is the size of this contractionary gap?

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### 2. What is potential output?

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The questions on this quiz and worksheet are all in multiple-choice format, and one gives you a practice problem to solve about finding the size of the contractionary gap. You'll also need to understand related terminology, like potential output.

## Quiz & Worksheet Goals

Challenge yourself with questions on the following:

• How to calculate the size of a contractionary gap in a given problem
• The definition of 'contractionary gap'
• What 'potential output' means
• The benefit of a contractionary gap
• What it's called when the AD, SRAS and LRAS are in particular positions

## Skills Practiced

• Reading comprehension - ensure that you draw the most important information from the related lesson on calculating the contractionary gap size
• Interpreting information - verify that you can read information regarding the silver lining to a contractionary gap and interpret it correctly
• Problem solving - calculate the contractionary gap in a sample problem