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Question 1? {1.25 points] The economy is in longrun equilibrium. Suddenly; due to improved international relations, a boom experienced by a major trading partner, and

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Question 1? {1.25 points] The economy is in longrun equilibrium. Suddenly; due to improved international relations, a boom experienced by a major trading partner, and the increased condence of policymakers, citizens become more optimistic about the xture and stag,r this we}r for a long time. How does the new longrun equilibrium diEer om the original one? Q The price level is the same and real GDP is higher. O Both the price level and real GDP are lower. O Both the price level and real GDP are higher. O The price level is higher and real GDP is the same. Question 18 {1.25 points] Which of the following shifts the shortrun aggregate supplyr to the left? 0 an increase in the money supply 0 an increase in the expected price level O an increase in the capital stock O an increase in the price level

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