May I please have assistance on the following three macroeconomics questions: 1. Assume there is no government or foreign sector. If the MPS is .2, a $20 billion decrease in planned investment will cause aggregate output to decrease by

• A. $200 billion.
• B. $20 billion.
• C. $100 billion.
• D. $4 billion.

2. Oil is an important resource used in Arboc. An oil price increase would

• A. increase Arboc's aggregate demand curve.
• B. decrease Arboc's short-run aggregate supply curve.
• C. decrease Arboc's aggregate demand curve.
• D. increase Arboc's short-run aggregate supply curve.

3. According to the Classical model, cyclical unemployment

• A. could not persist because wages would rise to eliminate the surplus of labor.
• B. could not persist because wages would fall to eliminate the surplus of labor.
• C. could be eliminated through fiscal and monetary policies.
• D. could be eliminated only through government intervention.