The aggregate supply curve indicates the:

a.relationship between prices and the natural rate of unemployment.b.relationship between prices and the aggregate quantity of goods and services purchased by consumers, investors, governments, and foreigners (net exports).c.quantity of goods and services producers will supply at different price levels.d.relationship between the real wage rate and the quantity of labor supplied by households.

In the short run, an increase in the price level causes:

a.a rightward shift in the aggregate demand curve.b.a movement upward along the short-run aggregate supply curve.c.a leftward shift in the short-run aggregate supply curve.d.a rightward shift in the short-run aggregate supply curve.

Suppose the price level falls. The result is that the:

a.general price level would rise causing a movement up the aggregate demand curve.b.aggregate supply curve would shift to the right.c.aggregate demand curve would slope downward because of the real balances effect.d.aggregate supply curve would shift to the left.

In the intermediate range of the aggregate supply curve, if government spending increases caused the aggregate demand curve to shift outwards, which of the following ismostlikely to occur?

a.Both the price level and real GDP will not change.b.The price level will rise, but real GDP will not change.c.The price level and real GDP will both rise.d.The price level will not change, but real GDP will increase.