1.A natural disaster will reduce SAS and hence increase the price level and real GDP. reduce SAS and hence increase the price level but reduce real GDP. reduce AD and hence reduce the price level and real GDP. reduce LAS and hence increase the price level but reduce real GDP.

2.A fall in the quantity of labor will reduce aggregate demand. increase long-run aggregate supply. reduce long-run aggregate supply. increase short-run aggregate supply.

3.A rise in interest rates will reduce C and I and shifts the AD curve to the right. increase costs of production and shifts the SAS curve to the left. reduce C and I and shifts the AD curve to the left. increase exports and shifts the AD curve to the right.

4.If Country X is currently at full employment. A fall in future profit will reduce SAS and hence increase price and real GDP. reduce LAS and hence raise price but reduce real GDP. reduce AD and hence raise price and real GDP. reduce AD and hence reduce price and real GDP.