Question 1 According to the real wealth effect, if you are living in a period of rising price levels, the cost of the goods and services you buy A decreases and your real income increases. B increases and your real income increases. C increases and your real income remains the same. D increases and your real income decreases, REPORT AN ERROR > Question 2 The interest rate effect suggests that A changes in the price level affect the real quantity of money held by households and firms and therefore the interest rate. B domestic investments fall when foreign interest rates rise relative to domestic interest rates. C changes in the price level affect the real purchasing power of money and therefore the money supply. D changes in the price level affect the level of real income and therefore consumption.Question 3 Aggregate demand is a relationship between and GDP Aggregate expenditures is a relationship between and GDP O prices, spending spending, prices O spending, spending prices, prices ()REPORT AN ERROR > Question 4 Suppose that the price level decreases. The AE curve will shift upward x The AD curve will shift downward xQuestion 5 Suppose that in the short run, with prices fixed at P = 100, equilibrium GDP is 5,000 Consider two scenarios A In the short run with prices sticky, consumption increases, and so AE increases, and equilibrium GOP rises to 7,000. B. A decrease in the price level causes GOP to rise to 7,000 Choose the correct answer below @Both scenarios represent movements along the aggregate demand curve O A represents a shift in aggregate demand; B represents a movement along the aggregate demand curve. B represents a shift in aggregate demand; A represents a movement along the aggregate demand curve. Both scenarios represent changes in aggregate demand