If the AD curve shifts to the right, what happens to a. the equilibrium rate of output? Increases O Decreases Q Does not change b. the equilibrium price level? 0 Decreases Increases Q Does not change c. Which of the following may cause this? (Select 2} a A natural disaster causing trade disruptions. Loans become easier to access. a A reduction in government employees. An increase in tariffs. An increase in transfer payments. ASI P3 Price Level P2 AD2 Real Output Figure 8.5 Our book describes the differences between classical and Keynesian economic thought. Say the current equilibrium is located at Q1 and P2 but full-employment is found at Q2. A Keynesian style approach to address this might be Multiple Choice O Shift AD right with more government purchases. O Shift AS right by reducing government regulations. O Shift AS left by tightening air pollution standards to improve air quality. O Shift AD right with an income tax increase