Question 21 [2 points} An increased federal budget deficit resulting from a recession can actually help stabilize an economy through transfer payments because an increased budget deficit will ______ transfer payments and thereby _ the income of some households. 0 increase; in crease 0 increase; decrease 0 decrease; increase 0 decrease; decrease Question 22 [2 points} If prices are sticky 0 economic activity will be coordinated efficiently. 0 economic activity will not be coordinated efficiently. 0 prices will quickly adjust to changes in demand. 0 quantity supplied will always equal quantity demand. Question 23 [2 points} In the long run 0 price and output levels are mutually dependent. O the level of output depends on the price level. 0 the level of output is independent of the price level. 0 the price level depends on the level of output. Question 24 [2 points} One reason the aggregate demand curve is downward sloping is because of the 0 interest rate effect. 0 welfare effect. 0 price effect. 0 tariff effect. Question 25 [2 points} The longvrun aggregate supply curve is O downward sloping. O upward sloping. O a vertical line at potential output. 0 a horizontal line at the current price level