1.What events/situations can cause:

a.The LAS curve to shift?

b.The SAS curve to shift?

2.What will happen to the:

a.LAS curve if Money wage rates fall?

b.LAS curve if the quantity of human capital increases?

c.SAS curve if Money wage rates fall?

d. SAS curve if the quantity of human capital increases?

3.Using the above graph, what is the short-run equilibrium level of real GDP and price level?

4..What will happen to real GDP and price level if Aggregate Demand increases (shifts to the right)?

5.What will happen to real GDP and price level if the Short-run Aggregate Supply decreases?

6.Using the above table,

a.In short-run macroeconomic equilibrium, what is the level of real GDP and price level?

b.Is there a recessionary gap, inflationary gap, or full employment?Why?

c.If there is an output gap, what is its magnitude?

\fPrice level Aggregate demand 120 130 140 150 500 400 300 200 Short-run aggregate supply 300 400 500 600 Long-run aggregate supply 500 500 500 500