12. Higher saving is associated with a. a larger capital stock and a higher standard of living in long run. b. a larger capital stock but not a higher standard of living in long run. a higher standard of living in long run but not a larger capital stock. d. neither a higher standard of living in long run nor a higher capital stock. c. 13. If the short-run aggregate supply curve is flat, the short run Phillips curve will be: a. flat. b. steep. c. backward bending. d. unrelated to the slope of the short-run aggregate supply curve. 14. The real exchange rate is determined by the equality of: a. saving and the demand for net exports. b. investment and the demand for net exports. c. net capital outflow and the demand for net exports. d. the negative value of net capital outflow and the demand for net exports. curve to the right, and the 15. A decrease in the price level shifts the aggregate demand curve a. b. IS; shifts to the right IS; does not shift LM; shifts to the right LM; does not shift c. d