\fY* Cyclical unemployment is higher a) To the left of the full-employment area b) To the right of the full-employment areaTC AD Ye Ye a) The government increased income taxes b) Business owners became more optimistic about the future c) The government decreased public spending d) A earthquake hit the country e) A new technology was invented that increased the productivity of laborQuestion 10 (0.5 pts Consider the AS curve in the graph below.Question 11 {as pts) 1iii-rhen unemployment is high and the economy is in a recession, a slight increase in output (during the recovery) does not immediately cause a strong increase in ination because a) The Fed is not applying a restrictive monetary policy b) There are many unemployed workers and many underutilized resources, so businesses do not have to bid the price of resources up and offer very high wage to workers. Consequently, they will not have to increase fast the price of the output they produce. c] The Fed is not applying an expansionary monetary policy :1) There is a wageprice spiral Question 12 [1 pts) Consider the graphs below. All of them depict an economy that is initially.r in a full- employment equilibrium and is then affected by a shock, Select the graph that represents the impact on the economyT of a sudden negative shock to autonomous consumption C. Question 4 (0.5 pts) A demand shock hire the economy and makes the ED curve shift outward as in the image below. Select the correct shock that has occurred. Inflation T Y* Output Supplied Y The upward movement in the AS curve depicted in the figure can have been caused by a) A decrease in the inflation that businesses expect b) An increase in public spending c) An increase in the price of gas or oil d) The use of a new, productive technologya) The interest rate goes from r, to % , the AE shifts up and the equilibrium amount of output demanded in the economy increases b) The interest rate goes from 71 to To , the AE shifts down and the equilibrium amount of output demanded in the economy decreases c) The interest rate goes from 71 to 72 , the AE shifts up and the equilibrium amount of output demanded in the economy increases d) The interest rate goes from 71 to 12 , the AE shifts down and the equilibrium amount of output demanded in the economy decreasesQuestion 1 (1 pts) The initisd interest rate in the economy is 1'1 and the economy demands the amount of output K31. Then, the Fed wants to change its monetar},F policy. To do so, the Fed uses an open market operation and sells US treasury bonds. Refer to the following picture and select what is the correct impact that this policy has l T: l a To Li .I. F; pie 'pue 11E with to En ' AE with r1 / AE with. T2