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Please give the right choice of these 2 question. QUESTION 1 25 p What is the effect of a change in future productivity At+1 on

Please give the right choice of these 2 question.

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QUESTION 1 25 p What is the effect of a change in future productivity At+1 on today's Aggregate Demand (AD)? A. The AD shifts to the right as firms increase investment today to enjoy the good news of tomorrow. B. There is zero effect. Productivity changes only affect the Aggregate Supply (AS) curve. C. The AD shifts to the left as firms reduce production and investment to wait for tomorrow's good news. OL B OIL. A OIL.C 25 poi QUESTION 2QUESTION 4 25 points Sa Which of the following best describe the effect on the supply side of the economy, in the partially sticky price model, of an increase in the value of leisure (0)? A. First, the increase in the value of leisure implies a shift to the left in the labor supply curve. This implies a higher wage in the labor market and a lower level of employment. Second, the aggregate supply curve shifts to the left. This is because, given P, less output is produced with the lower level of employment. B. First, the increase in the value of leisure implies a shift to the left in the labor supply curve. This implies a higher wage in the labor market and a lower level of employment. Second, the aggregate supply curve shifts to the right. This is because, given P, the higher wage ultimately increases employment and production. C. There is no effect in the AS curve. OL. A OIL. C OIL. B

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