Q31. Which of the following would cause a negative demand shock (shift to the left) in aggregate demand?

a.decreased availability of business capital

b.increased government spending

c.production costs falling

Q32. Aggregate supply curves are ________ for low levels of output, and ________ for high levels of output.

a.relatively flat; relatively steep

b.relatively steep; remain steep

c.relatively flat; remain flat

Q35. How does an economist depict cyclical unemployment on an aggregate demand-aggregate supply (AD-AS) diagram?

a.By depicting the duration of the recession on the diagram.

b.Showing how close the economy is to potential or full employment level of GDP.

c.By depicting how much the AD curve has moved past potential or full employment.