1.Short-run aggregate supply:

is a fixed volume of output.

reflects how much RGDP suppliers are willing and able to produce at different price levels.

shifts only when theLRASshifts.

is not affected at all by the price level.

2.A short run equilibrium:

Will be at a greater output level than the natural level of real output.

Will be at the natural level of real output.

Will be at a smaller output level than the natural level of real output.

Short-run equilibrium could be at any of the above levels of output.

3.A long run equilibrium:

Group of answer choices

Will be at a greater output level than the natural level of real output.

Will be at the natural level of real output.

Will be at a smaller output level than the natural level of real output.

Long-run equilibrium could be at any of the above levels of output.

4.Starting from long run equilibrium, in response to a decrease in aggregate demand (AD):

Group of answer choices

The price level will increase more in the long run than in the short run.

The short run equilibrium level of real output will be greater in the long run than in the short run.

Neither the price level nor real output will change in the long run.