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- A sudden increase in consumer spending will shift the aggregate demand curve to the right and lower the price level/inflation and increase the level of GDP output. True /FalseAggregate demand shifts right when the government Group of answer choices increases infrastructure expenditures. decreases the money supply. removes an investment tax credit increases taxes.When aggregate supply curve shifts to the right because oil prices are decreasing, then: Group of answer choices unemployment decreases and inflation increases. unemployment and inflation decrease. unemployment and inflation increase. unemployment increases and inflation decreases.
- Aggregate demand shifts left if a. government purchases decrease and shifts left if stock prices rise. b. government purchases increase and shifts left if stock prices fall. c. government purchases increase and shifts left if stock prices rise. d. government purchases decrease and shifts left is stock prices fall.The aggregate supply shifts to the right if: Group of answer choices nominal wages increase. land rents decreases. supplies of resources decrease. private investment increases.A supply shock might lead to stagflation, if it shifts the short-run aggregate supply curve to the right, causing an increase in the price level and a decrease in real GDP. Select one: True False
- At very low price levels there is a low level of production. Since increases in price levels encourage producers to increase output the Aggregate Supply curve tends to be very__________________ until the factors of production become scarce.The aggregate demand curve slopes downward because Group of answer choices a lower domestic price level will induce more imports a lower interest rate will associate with a lower price level to increase the consumption on durable goods the law of demand works people are willing to purchase expensive goods when inflation occursIf aggregate demand shifts right then in the short run Group of answer choices firms will decrease production. Unemployment will rise. firms will increase production. Unemployment will fall. firms will increase production. Unemployment will rise. firms will decrease production. Unemployment will fall.
- Aggregate supply grows over time because of growing consumer and government spending. True or FalseWhich of the following would decrease short run aggregate supply? a decrease in resource costs a decrease in expected rate of inflation negative supply shocks, ex. covid-19 outbreak all of the above none of the aboveAssess the validity of the following statement: An increase in government spending, the target inflation rate or the monetary base shifts the aggregate demand curve to the right.