Hi,

Please clarify those two questions:

QUESTION 6

1. An increase in short-run aggregate supply could decrease nominal GDP.

• True
• False (That's my option)

QUESTION 7

During a recession,

1. unemployment is below the natural rate
2. actual output is above potential output
3. both unemployment and the price level are too high (my option)
4. contractionary gaps may persist if wages are not very flexible
5. expansionary gaps may persist if wages are not very flexible

QUESTION 10

Aggregate supply describes the relationship between

1. price level and real GDP (my option)
2. nominal and real GDP
3. real GDP and the level of production
4. nominal GDP and the level of output
5. the level of output and income

Thank you!