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The Bangko Sentral ng Pilipinas increased it key policy rates from 1.8 to 2.4%. How will this affect output and price levels in the short run? O a. Only price levels change O b. Prices and output levels increase O c. Only output levels change O d. prices and output levels decrease95% of agricultural land in Country C, a country mainly dependent on its agriculture, have been converted to residential lands displacing about 70% of the country's labor force. What will happen to price and output levels? O a. Both will decrease O b. Price levels will decrease while output will increase O c. Both will increase O d. Price levels will increase while output will decreaseThe Bangko Sentral ng Pilipinas increased it key policy rates from 1.8 to 2.4%. What will happen to the AS-AD equilibrium? "The AS curve will shift to the right and the economy will be in a new equilibrium level P. The AD curve will shift to the right and the economy will be in a new equilibrium level " The AD curve will shift to the left and the economy will be in a new equilibrium level O d. The AS curve will shift to the left and the economy will be in a new equilibrium levelThe government can respond to inflationary_gaps by reducing the money circulating in the economy. O a. False, government; recessionary gaps O b. True O c. False, economy; inflationary gapsMovement of wages downwards shifts the AS curve to the left. C] a. True O is. False, 8 curve to the right EH1 :3. False, AD curve to the right [:1 :31. False, AD curve to the left A) Dennis and Maria's underaged daughter Aiza tested positive for COVID-19 and was rushed to the hospital where she stayed for almost three weeks. B) Fortunately, Maria had a PhilHealth membership where Aiza is her dependent. She used this to pay for Aiza's medical bills but it did not cover all their expenses in the hospital. C) Dennis asked for assistance from other family members but none of them were able to extend help. So, he decided to take out a loan from the bank. D) He used the loan to finance the remaining balance. In the end, Aiza recovered and got discharged from the hospital. Which of the statements will increase aggregate expenditure? O a. Band C only O b. None of the above O C. A only O d. Band D only O e. C and D onlyWhich of the following statements is correct? O a. The Bangko Sentral ng Pilipinas may set the interest rate at which it borrows from banks to close an inflationary gap. O b. Both b and c O c. In an inflationary gap, under no special condition, the Bangko Sentral ng Pilipinas may regulate interest rates charged by banks, lending investors, and pawnshops to move the economy back to equilibrium. O d. Bangko Sentral ng Pilipinas can set inflation to close a recessionary gap.Which of the following statements is not true? O a. An economy is operating in full employment in the long run. O b. There is excess productive capacity in the long run. O c. The level of potential output is constrained by a factor of production. O d. An economy may produce more than its potential output in the short run.A higher GNP means an economy is producing higher output. O a. True O b. False O c. Neither True nor FalseAn increase in the GDP deflator decreases the value of the real GDP. O a. True O b. False O c. Neither True nor False