Price Level 0 a b Real GDP Refer to the diagram above. If the aggregate supply curve shifted from ASy to ASq, we could say that: aggregate supply has increased, equilibrium real output has decreased, and the equilibrium price level has increased aggregate supply has decreased, equilibrium real output has decreased, and the equilibrium price level has increased aggregate supply has increased, and the equilibrium price level has risen to 0g @ an increase in the amount of real output supplied has occurred aggregate supply has decreased, equilibrium real output has increased, and the equilibrium price level has decreased Price Level 0 a b Real GDP Refer to the diagram above. A shift in the aggregate demand curve from ADg to AD4 might be caused by a(n): @ decrease in aggregate supply decrease in the amount of output supplied @ increase in investment spending @ decrease in net export spending @ increase in government purchases Price Level Refer to the figure above. Suppose that aggregate demand increased from AD; to AD;. For the price level to stay constant: the aggregate supply curve would have to shift rightward the aggregate supply curve would have to shift leftward @ real output would have to remain constant @ the aggregate supply curve would have to be vertical @ the AS curve would have to be downward-sloping Question 4 0.5 Points AS Price Level AD4 AD2 AD, ADo Real GDP Refer to the figure above. Which of the following shifts in AD represents an inflationary expansion in real output as a result of aggregate demand in excess of potential output? A ADo to AD1 B AD1 to ADo C AD3 to AD4 D AD4 to AD3 E AD4 to AD1AS Price Level AD4 AD2 AD ADo Real GDP Refer to the figure above. Which of the following shifts in AD represents a non-inflationary expansion in real output? A ADo to AD1 B AD1 to AD2 C AD2 to AD3 D AD3 to AD2 E AD3 to AD4(A) (B) AS, AS, AS, AS, Price Level Price Level AD AD Real GDP Real GDP (C) (D) AS AS Price Level Price Level AD, AD, AD, AD, Real GDP Real GDP Which of the above diagrams best portrays the effects of an increase in consumer spending? A A B B C C D D E both A and D(A) (B) AS, AS, AS, AS, Price Level Price Level AD AD Real GDP Real GDP (C) (D) AS AS Price Level Price Level AD, AD, AD, AD, Real GDP Real GDP Which of the above diagrams best portrays the effects of declines in the national incomes of our major international trading partners? A A B B C C D D E both C and D9 Price Level ADo AD1 a b c Real GDP Refer to the diagram above. If the initial aggregate demand and supply curves are ADo and ASo, the equilibrium price level and real output will be: A Of and Oc, respectively B Og and Ob, respectively C Of and Oa, respectively D Oe and Ob, respectively Oe and Oa, respectively(A) (B) AS, AS, AS, AS, Price Level Price Level AD AD Real GDP O Real GDP (C) (D) AS AS Price Level Price Level `AD, AD, AD, AD, Real GDP Real GDP Which of the above diagrams best portrays the effects of a decrease in the availability of key natural resources? A A B B C C D D E both A and BCapital Goods 0 Consumer Goods Refer to the figure above. Economic growth is best represented by a: @ shift in the production possibilities curve from AB to CD move from y on CD to x on AB @ shift in the production possibilities curve from CD to AB @ move from z to x along AB @ a move from x to z along AB