6 points eBook O References Instructions: Use the tool provided "New Curve\" to plot the appropriate line. After placing the curve, click on "Select\" and choose whether to label the curve "AD4" or "AS4" from the dropdown menu. Aggregate Demand and Aggregate Supply Tools s Mew Curve Price Level v 5 Real GDP b. Due to the increased regulations for firms, the economy will likely experience O demand-pull inflation, since the increased regulations shift the AD curve to the right and cause prices to increase. ) cost-push inflation, since the increased regulations shift the AS curve to the left and cause prices to increase. demand-pull inflation, since the increased regulations shift the AS curve to the right and cause prices to increase. O cost-push inflation, since the increased regulations shift the AD curve to the left and cause prices to increase. 10 For each of the following scenarios, determine the effect on aggregate supply. a. There is an unexpected decrease in oil prices. This causes solnts O a movement along the aggregate supply curve to the left, indicating a decrease in the quantity of real GDP supplied. C a movement along the aggregate supply curve to the right, indicating an increase in the quantity of real GDP supplied. @ an increase in aggregate supply, shifting the aggregate supply curve to the right. eB%DK O a decrease in aggregate supply, shifting the aggregate supply curve to the left. @ b. The government increases the amount that all producers are required to contribute to health insurance coverage. This causes References C a movement along the aggregate supply curve to the left, indicating a decrease in the guantity of real GDP supplied. C an increase in aggregate supply, shifting the aggregate supply curve to the right. C a movement along the aggregate supply curve to the right, indicating an increase in the quantity of real GDP supplied. @ a decrease in aggregate supply, shifting the aggregate supply curve to the left. 7 2 @ A decrease in inflation, but an increase in real GDP polnts a. A positive demand shock to the economy will have what effect in the short run? O A decrease in both inflation and real GDP O Anincrease in inflation, but a decrease in real GDP O An increase in both inflation and real GDP eBook D References b. A negative demand shock to the economy will have what effect in the short run? ) An increase in both inflation and real GDP O A decrease in both inflation and real GDP O An increase in inflation, but a decrease in real GDP A decrease in inflation, but an increase in real GDP c. The Phillips curve depicts what short-run relationship? An inverse relationship between inflation and unemployment O An inverse relationship between inflation and real GDP ) A direct relationship between inflation and real GDP O A direct relationship between inflation and unemployment