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Explain with answer. Please getting ready for finals. 7. (Figure: Predicting Aggregate Demand Shifts) Which of the following would shift the aggregate demand curve from

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Explain with answer. Please getting ready for finals.

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7. (Figure: Predicting Aggregate Demand Shifts) Which of the following would shift the aggregate demand curve from AD, to AD,? AS Aggregate Price Level (P AD : AD, Aggregate Output (C) Oa. a tax cut Ob. an increase in government purchases Oc. an improvement in consumer expectations about the future Od. an increase in interest rates 8. If oil prices decline, the short-run aggregate supply curve shifts and output supplied will Oa. right; decrease Ob. right; increase Oc. left; increase Od. left; decrease 9. The short-run aggregate supply curve is positively sloped because: Oa. a short-run increase in GDP usually is accompanied by a rise in the price level. Ob. a short-run increase in GDP usually is accompanied by a slower rise in the price level. Oc. all variables are fixed in the short run. Od. many input prices are slow to change in the short run. 10. Which is a determinant of aggregate supply? Oa. household expectations Ob. prices of substitutes Oc. productivity Od. interest rates 11. High taxes and/or heavy regulation: Oa. raise costs of production so that the aggregate supply curve shifts to the left. Ob. are likely to shift aggregate supply to the right. Oc. can cause firms to boost production so they can cover the added costs. Od, are not likely to affect firms' behavior, since they are more concerned about profits than taxes or regulation . 12. The long-run aggregate supply curve uses the classical assumptions that all variables are in the long run and that long-run equilibrium occurs at Oa. flexible; less than full employment

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