10) Keynesian analysis supports government intervention in economics due to which of the following reasons? a. Prices of goods adjust rapidly in an economy, &consumers need protection from rapidly changing prices which only a government can provide _b7Consumers are not willing to lend out their savings, so only government can provide loans to businesses to encourage capital investments & Consumers are unwilling to invest in education or training without incentives from the government _# Technological innovation will not occur without governmental incentives & intervention Wages are \"sticky\" & CANNOT adjust to changing price levels quickly enough, particularly in the downward direction, so government must provide monetary or fiscal policy to alleviate unemployment 7) Which of the following will NOT cause the AD curve to shift to the right? 2~ Increased income or wealth b. Consumer/business optimism on job growth g Interest rates dropping overnmem decrease in the money supply e. Government decrease in taxes 8) Which of the following statements describes the long-run aggregate supply curve (LADS)? a,/The LAS is vertical & stands at the level of output that corresponds with full employment b. The LAS is horizontal because changes in aggregate demand affect real GDP but not the price level S The LAS is upward sloping & reflects the fact that wages are relatively slow to adjust to price increases on goods from producers . The LAS is horizontal & stands at the level of output that corresponds with full employment e. The LAS is vertical because changes in aggregate demand affect real GDP but not the price level