Business, 17.12.2020 14:00 omgomglol

1>On the long-run aggregate supply curve, * An increase in the price level increases the aggregate quantity of GDP supplied
An increase in the price level increases the level of potential GDP
An increase in the price level reduces the aggregate quantity of GDP supplied
An increase in the price level has no effect on the aggregate quantity of GDP supplied
2>Suppose that firms become more optimistic about the future profitability of new investment. Which of the following will happen in the short run? *
Price level will decrease
Aggregate demand will shift to the left
Output will decline
Unemployment will decline
3> A fall in the foreign exchange rate of the dollar *
Increases aggregate demand
Increases the aggregate quantity demanded
Decreases the aggregate quantity demanded
Decreases aggregate demand
4> Which of the following is true about the long- run aggregate supply curve? *
It is vertical at the level of potential GDP
It does not shift in response to temporary changes in aggregate demand
It shows the relationship between the price level and real GDP when wages and other costs are at an equilibrium level
All of the above
5> Because of the slope of the aggregate demand curve we can say that *
An increase in the price leads to a higher level of real GDP demanded
A decrease in the price level leads to a higher level of real GDP demanded
An increase in the price level leads to a shift in the aggregate demand curve
A decrease in the price level leads to a shift in the aggregate demand curve

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1>On the long-run aggregate supply curve, * An increase in the price level increases the aggrega...

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