greatest when the aggregate 29) Refer to Figure 26.2. Between the output levels of $300 billion and $600 billion, the relatic between the price level and output is A) negative B) positive. C) constant. D) There is no relationship between the price level and output. 30) Refer to Figure 26.2. This economy reaches capacity at A) $300 billion. B) $600 billion. C) $900 billion. D) an output level that is indeterminate from this information because aggregate demand is not given. 31) Refer to Figure 26.2. Between the output levels of $600 billion and $900 billion, the relationship between the price level and output is A) negative. B) positive. C) constant. D) There is no relationship between the price level and output. 32) Refer to Figure 26.2. At $900 billion, this economy A) is producing below its capacity. B) is above its production capacity C) reaches its capacity. D) Any of the above can be correct Price level ADI 2 ADO Aggregate output (Y) Figure 27.1 33) Refer to Figure 27.1. An aggregate demand shift from AD2 to ADO can be caused by A) a decrease in the price level. B) an increase in the price level. C) a decrease in taxes. D) a decrease in money supply. 34) Refer to Figure 27.1. An aggregate demand shift from AD! to ADO can be caused by A) a decrease in government spending. B) an increase in money supply. C) a decrease in the price level. D) an increase in the price level. 35) Refer to Figure 27.1. Suppose the economy is at Point A, an increase in the price level can cause a movement to Point A) E. B) B. C) C. D) D