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1) Assume an economy operates in the intermediate range of its AS curve (upward sloping AS curve). State the direction of shift in the AD or the AS curve for each of the following changes and the impact of that change on the price level, on GDP, and on employment.

a) a rise in the price of crude oil

b) an increase in the spending on national defense

c) an increase in the cost of imported goods

d) an improvement in labor productivity