31) If the U.S. aggregate price level falls

interest rates go up.

net exports rise.

the purchasing power of wealth declines.

the aggregate demand curve shifts to the right.

32) The decline in aggregate demand that occurred during the Great Depression caused a drop in real GDP

but no change in the price level.

and deflation.

but a modest rise in inflation.

but an increase in the price level.

33) The concept of the vertical long-run aggregate supply curve is inconsistent with the classical model.

True

False

34) Demand-pull inflation is due to excessive spending on goods and services.

False

True

37) Which factor is NOT a determinant of aggregate supply?

income

taxes on business

regulation

input prices