Real balance effect means that: Deflation decreases production Inflation increases production O Deflation forces people to reduce consumption Inflation forces people to reduce consumption Question 8 Long Run Aggregate Supply Curve is vertical. That means: in the long run inflation decreases production In the long run, deflation decreases production In the long run, inflation increases production In the long run, inflation does not affect production Question 9 An increase in government spending, during recessions is expected to: effectuate a movement upward along a given aggregate demand curve Shift the aggregate demand curve to the left Shift the aggregate demand curve to the right Effectuate a movement downward along a given aggregate demand curve MacBook Pro