Questions 9-22 refer to the model of aggregate supply and aggregate demand in its most simplified form as described in Chapter 10. This is a static model. A rapid and unexpected reduction in aggregate demand (AD) eventually leads to O a permanent increase in the price level and a return to the natural level of output O a permanent reduction in the price level and a return to the natural level of output Question 20 1 pt Questions 9-22 refer to the model of aggregate supply and aggregate demand in its most simplified form as described in Chapter 10. This is a static model. Stabilization policy refers to policy actions that (choose one or more) O address demand and supply shocks O are aimed at reducing the severity of short-run economic fluctuationsQuestions 9-22 refer to the model of aggregate supply and aggregate demand in its most simplified form as described in Chapter 10. This is a static model. The introduction and expanded availability of credit cards (choose one or more) O causes the aggregate demand curve to shift upward causes an increase in the velocity of circulation causes nominal spending to rise O is an example of a demand shock Question 22 1 pts Questions 9-22 refer to the model of aggregate supply and aggregate demand in its most simplified form as described in Chapter 10. This is a static model. Which statements below are TRUE? (Choose one or more) O A supply shock can be either an adverse or a favorable supply shock. O Supply shocks are sometimes called price shocks. O Such an accommodation results in a permanently higher level of prices. A favorable supply shock will cause the short-run aggregate supply curve to shift downward. O An adverse supply shock will cause the short-run aggregate supply curve to shift upward. O An adverse supply shock may be accommodated by expanding aggregate demand