I. Modified True or False. Each item is worth 1 point only and will only given to correct answers. Read the instruction carefully and answer the items below. For items 1-10, write TRUE if the answer is true. If the answer is false, replace the underlined word/s with the correct answer. 1. The natural level of real GDP depends on the level of prices 2. Changes in the real money supply will result to shifts of the aggregate demand curve. 3. Policies in the demand-side lead to higher outputs. 4. At all times, employment and inflation have an inverse relationship. 5. In the short run, a leftward shift in the aggregate demand due to the pandemic will likely reduce output. 6. Governments address supply shocks through expansionary monetary policies. 7. An increase in the change in real GDP demanded at each price level with decrease the value of the multiplier. 8. Adverse supply shocks result to lesser output and unemployment. 9. A leftward shift of the aggregate supply curve reduces output and increases price levels. 10. Innovations, such as new technology, will increase output levels.ll. Graph it out and explain. Your graph for each item will be worth 4 points each. Refer to the problem set assignment for the scoring guide. Meanwhile, you explanation are worth 2 points each. For items 11-13. illustrate the change in the aggregate demand and aggregate supply curves (hereafter referred to as AID-AS Curves) provided the following conditions. Make sure that your labels are complete and correct. Below your graph. write an explanation on why such changes occurred. 'I1.A bill proposed by the Congress imposing a tax cut lapsed into law and is now in effect. Show the AID-AS curves in the short-run. 12. To target inflation. the Bangko Sentral ng Pllfpinas implements an increase in interest rates. Show the AID-AS curves in the long-run. 13. Country A is mainly dependent on its agricultural production. When a super typhoon hit, it wiped out farm lands and led to agricultural shortages. Show country A's AS-AD curves in the short-run