010 Aggregate Supply and Aggregate Demand 5 Points Answer the following. 010.1 '| Point Following a permanent reduction in government purchases (7', in the shortrun: O inflation rises, output rises, consumption rises, and investment falls 0 inflation rises, output rises, consumption falls, and investment falls 0 inflation rises, output rises, consumption rises, and investment rises O inflation falls, output falls, consumption falls, and investment rises O inflation falls, output falls, consumption rises, and investment rises O inflation falls, output rises, consumption rises, and investment rises 010.2 '| Point Following a permanent increase in the exogenous component of investment I, in the shortrun: O inflation rises, output rises, consumption rises, and investment falls 0 inflation rises, output rises, consumption falls, and investment falls 0 inflation rises, output rises, consumption rises, and investment rises O inflation falls, output falls, consumption falls, and investment rises O inflation falls, output falls, consumption rises, and investment rises O inflation falls, output rises, consumption rises, and investment rises 010.3 '| Point Following a permanent decrease in the exogenous component of monetary policy f, in the shortsrun: O inflation rises, output rises, consumption rises, and investment falls 0 inflation rises, output rises, consumption falls, and investment falls 0 inflation rises, output rises, consumption rises, and investment rises O inflation falls, output falls, consumption falls, and investment rises O inflation falls, output falls, consumption rises, and investment rises O inflation falls, output rises, consumption rises, and investment rises 010.4 '| Point Following a permanent increase in taxes T, in the shortsrun: O inflation rises, output rises, consumption rises, and investment falls 0 inflation rises, output rises, consumption falls, and investment falls 0 inflation rises, output rises, consumption rises, and investment rises O inflation falls, output falls, consumption falls, and investment rises O inflation falls, output falls, consumption rises, and investment rises O inflation falls, output rises, consumption rises, and investment rises 010.5 '| Point Following a temporary reduction in the inflation shock 16, in the shortsrun: O inflation rises, output rises, consumption rises, and investment falls 0 inflation rises, output rises, consumption falls, and investment falls 0 inflation rises, output rises, consumption rises, and investment rises O inflation falls, output falls, consumption falls, and investment rises O inflation falls, output falls, consumption rises, and investment rises O inflation falls, output rises, consumption rises, and investment rises