Question 19 (1 point) Starting at "long run equilibrium" what will happen if Exports decrease in the short run, the AD curve will shift to the right & the economy will produce above its natural level and unemployment will fall; in the long run the AS curve will shift to the left, increasing the "price level" and returning the economy to its "natural" level of output and employment in the short run, the AD curve will shift to the left & the economy will produce below its natural level and unemployment will fall; in the long run the AS curve will shift to the right, decreasing the "price level" and returning the economy to its "natural" level of output and employment in the short run, the AD curve will shift to the left & the economy will produce below its natural level and unemployment will rise; in the long run the AS curve will shift to the right, decreasing the "price level" and returning the economy to its "natural" level of output and employment in the short run, the AS curve will shift to the right & the economy will produce above its natural level and unemployment will fall; in the long run the AD curve will shift to the left, increasing the "price level" and returning the economy to its "natural" level of output and employmentX lanmugam: Attempt 1 Question 21 (1 point) The government plans to spend an additional $250 million on road construction to access a new mining site in northern Canada. Economists estimate the marginal propensity to import is 12.5% and the marginal propensity to consume is 36%. Ignoring any losses to the "crowding out effect", in theory how large could aggregate demand grow from this initial investment by government? $390.6 million $250.0 million $326.8 million $485.4 million Question 22 (1 point)Question 22 (1 point) Assuming no crowding-out, investment-accelerator, or multiplier effects, how will a $100 billion increase in government expenditures shift aggregate demand? It will shift aggregate demand right by $100 billion. It will shift aggregate demand right by more than $100 billion. It will shift aggregate demand left by more than $100 billion. It will shift aggregate demand right by less than $100 billion. Question 23 (1 point)Question 23 (1 point) Suppose GDP last year in a closed economy was $3,000, taxes were $200, government spending was $500, and consumption was $1,400. What was private saving? $1,400 $1,100 O-$300 none of the listed answers are correct Question 24 (1 point)Question 24 (1 point) An investment is currently advertising a rate of return of 10.5% per year. You anticipate future annual inflation to be 6.8%. The annual "real rate" of interest for this investment is 10.5% 4% 3.7% 6.8% Question 25 (1 point) liters for $5 000 apiece The local farmerQuestion 25 (1 point) Josephine makes and sells custom-made guitars for $5,000 apiece. The local farmer buys a guitar from Josephine and sells her hay for Josephine's horse for $4 per bale. Money in this example is being used as a/an medium of exchange O demand deposit store of value commodity money