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Question 15 2 pts LRAS SRAS1 P C SRAS 2 B D A AD1 AD 2 Graph with X-axis labeled Y and the Y-axis labeled P. Graph contains a single vertical line labeled LRAS. Where LRAS meets the X-axis, it is labeled YP. Graph also contains two parallel, upward sloping lines, labeled SRAS1 and SRAS2. SRAS 1 is above SRAS2. Graph also contains two parallel, downward sloping lines, labeled AD1 and AD2. AD1 is above AD2. There are four points, labeled A through D, where these lines intersect. Point A is where LRAS, SRAS2, and AD2 meet. Point B is where SRAS1 and AD2 meet. Point C is where LRAS, SRAS1 and AD1 meet. Point D is where SRAS2 and AD1 meet. Point A is lower along LRAS than Point C. Point B is to the left of the LRAS line, and Point D is to the right of the LRAS line. Refer to the figure above. Suppose the economy is at point A. If investment spending increases in the economy, where will the eventual long-run equilibrium be? OD OC O A O BQuestion 13 2 pts A sudden increase in the level of technology occurs. How will this affect short-run aggregate supply and the macroeconomic equilibrium? 0 SRAS will shift to the right, the equilibrium price level will rise, and the equilibrium level of GDP will rise. 0 SRAS will shift to the left, the equilibrium price level will rise, and the equilibrium level of GDP will falls 0 SRAS will shift to the right, the equilibrium price level will fall, and the equilibrium level of GDP will rise. 0 SRAS will shift to the left, the equilibrium price level will fall, and the equilibrium level of GDP will fall. Question 4 2 pts Spending on wars, while not considered scal policy, is categorized as government purchases. How do increases in spending on wars affect the aggregate demand curve? 0 It will shift the aggregate demand curve to the left. 0 It will shift the aggregate demand curve to the right. 0 It will move the economy up along a stationary aggregate demand curve. 0 It will move the economy down along a stationary aggregate demand curve. Question 5 2 pts Holding all else constant, which of the following will shift the aggregate demand curve to the left? 0 an increase in exports 0 an increase in net exports 0 an increase in imports Question 6 2 pts On the long-run aggregate supply curve, a decrease in the price level 0 increases the quantity of real GDP supplied. 0 decreases the level of potential GDP. 0 decreases the quantity of real GDP supplied. 0 has no effect on the quantity of real GDP supplied. Question 3 2 pts P A B AD 2 AD1 Y Graph with X-axis labeled Y and the Y-axis labeled P. A single line with a negative slope starts near the top left corner of the graph and goes straight to the lower right corner at roughly a -45 degree angle. This line is labeled AD 1. A second line, parallel to the first but shifted to the right, is labeled AD2. On the AD1 line, there are two points, labeled Point A and Point B. Point A is farther to the right than Point B. Refer to the figure above. Holding all else constant, a decrease in consumers' expected future income would be represented by a movement from _ O AD2 to AD1 O point B to point A O point A to point B O AD1 to AD2Question 1 2 pts Which of the following is not one of the three main reasons for the inverse relationship between AE and price level? O The wealth effect The international-trade effect O The interest-rate effect O The price-level effect