QUESTION 3 The long run aggregate supply curve (LRAS) has a verticle slope indicating that changes in the price level have no effect on long run supply. This feature is consistent with which of the following theories. sticky price theory O liquidity theory the classical dichotomy the invisible hand QUESTION 4 A leftward shift in the AD curve might be caused by which of the following? falling price expectations the interest rate effect a reduction in the money supply falling wage costs QUESTION 5 We often use the SRAS/AD model to describe which of the following? short run economic fluctuations long run economic trends the effect of changes in the money supply on the interest rate the trade balance