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Question 11 2 pts O A decrease in price but no net change in output 0 An increase in price and output Q A decrease

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Question 11 2 pts O A decrease in price but no net change in output 0 An increase in price and output Q A decrease in price and output An increase in price but no net change in output Question 13 2 pts In the AD-AS model, an increase in aggregate demand will lead to: 0 An increase in price in the short run and an increase in output in the long run An increase in output in the short run and an increase in price in the long run 0 A decrease in price in both the short and the long run 0 A decrease in output in the short run and a decrease in price in the long run 0 An increase in price in both the short and the long run Question 14 2 pts In the AD-AS model, the difference between the short run and the long run in equilibrium is that: Q) In the long run, changes in aggregate demand affect the price level but not output 0 In the short run, changes in aggregate demand affect the price level but not output 0 In the short run, prices are exible and the supply curve is vertical 0 In the long run, changes in aggregate demand affect the output Question 15 2 pts Which of the following statements are true in the AD-AS model? i) When output is above its natural level, prices increase over time ii) The short-run and the long-run effects of an increase in money supply on output are the same iii) The aggregate demand curve is downward sloping because a fall in real money balances causes a decrease in the quantity demanded for goods and services 0 iand ii 0 ii and iii iand iii 0 i only Question 2 2 pts Suppose there's an exogenous decrease in the velocity of money in the AD-AS model. Such a shock the government aims to keep the price level stable, the government should Increase money supply V _ Question 21 2 pts What is the key assumption in the AD-AS model that makes the short-run aggregate supply curve horizontal, while the long-run aggregate supply curve is not horizontal? O Prices are flexible in both the long-run and the short-run. O Prices are sticky in the long-run but flexible in the short-run. O Prices are sticky in both the long-run and the short-run. Prices are sticky in the short-run and flexible in the long-run

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