20. A positive demand shock will cause the price level to ___ in the short run, and a negative supply shock will cause the price level to ___ in the short run. (A) increase; increase (B) decrease; decrease (C) increase; decrease (D) decrease; increase (E) decrease; remain unchanged

21. If an economy is initially in long-run macroeconomic equilibrium and then experiences a positive demand shock, then in the short run, unemployment will ___ and in the long run, unemployment will ___. (A) remain unchanged; increase (B) remain unchanged; decrease (C) decrease; return to the natural rate (D) increase; return to the natural rate (E) decrease; decrease

22. If an economy is initially in long-run macroeconomic equilibrium and then experiences a negative demand shock, then in the short run, what will happen to output, unemployment, and the price level? Output; Unemployment; Price Level (A) Decrease; return to natural rate; Decrease (B) Return to Yfe; Increase; Increase (C) Return to Yfe; return to natural rate; Decrease (D) Decrease; Increase; Decrease (E) Increase; return to natural rate; return to natural price level

23. If an economy is initially in long-run macroeconomic equilibrium and then experiences a negative demand shock, then in the long run, what will happen to output, unemployment, and the price level? Output; Unemployment; Price Level (A) Increase; Return to natural rate; Decrease (B) Return to Yfe; Increase; Increase (C) Return to Yfe; Return to natural rate; Decrease

(D) Decrease; Increase; Decrease (E) Increase; return to natural rate; return to natural price level

24. If an economy is in long-run macroeconomic equilibrium and experiences a negative supply shock, then in the long run, what will happen to output, unemployment, and the price level if prices are able to fully adjust? Output; Unemployment; Price Level (A) Increase; Return to Natural Rate; Decrease (B) Return to Yfe; Return to Natural Rate; Return to original PL (C) Return to Yfe; Return to Natural Rate; Decrease (D) Decrease; Decrease; Decrease (E) Increase; Decrease; Return to Natural Price Level

25. Which of the following variables will change in the long run in response to a demand shock if prices are able to fully adjust? I. Unemployment II. Output III. Price level (A) I only (B) II only (C) III only (D) I and II only (E) I, II, and III

26. A positive demand shock will cause, in the short run, I. economic growth II. inflation III. increased employment (A) I only (B) II only (C) III only (D) II and III only (E) I, II, and III