D Question 9 2 pts An increase in potential output in the AD-AS model will in the long run lead to what? o An increase in output and a decrease in inflation relative to the initial equilibrium o No change in output and a decrease in inflation relative to the initial equilibrium An increase in output and an increase in inflation relative to the initial equilibrium o An increase in output and no change in inflation relative to the initial equilibriumQuestion 10 2 pts Consider an AD-AS model with AD curve Y Y* = ay(2r 75*) + 6D and AS curve 7: = 2:3 + B(Y Y*) + 65' with parameter values a = 0.5, y = 1, (b = 1 and = 0.5 and with ination target x* = 0.02 and potential output normalised to Y* = 1. Starting from a long-run equilibrium with \"e = 2r*, suppose there is a temporary demand Shock 5D = 0.05. Which of the following is TRUE? \" In the short run, output is 4% below trend In the short run, output is 4% above trend In the short run, ination is 3% ' In the short and the long run, output is 4% below trend