What happens to the inflation rate and employment as the economy goes into a stagflation? O 5:. Inflation rate increases and cross out employment decreases O b. Inflation rate decreases and cross out employment increases. 0 c. Both Inflation rate and employment cross out increase 0 d. Both Inflation rate and employment U055 out decrease Price Level Use this Figure to answer the following question RGDP Refer to the gure. If there is a positive cyclical unemployment, what will the new longrun equilibrium be if the government used a fiscal policy? cross out cross out cross out cross out Which of the following increases would shift the SRAS curve but NOT the LRAS curve? O a. an increase in the available quantity of cross out available natural resources O b. an increase in the level of technology cross out O c. an increase in the wage rate paid to cross out labour O d. an increase in the capital stock cross outWhat will an increase in government purchases or a decrease in taxes, other things being equal, tend to do? O a. decrease interest rates and decrease cross out net exports O b. increase interest rates and increase net cross out exports O c. increase interest rates and decrease net cross out exports O d. decrease interest rates and increase net cross out exportsRefer to the following table National Consumption Investment Government Net income spending spending spending exports 260 260 25 10 5 280 270 25 10 5 300 280 25 10 5 320 290 25 10 5 340 300 25 10 5 360 310 25 10 5 What is the value of the spending multiplier? O a. 5 cross out O b. 4 cross out O c. 2 cross out O d. 3 cross out O e. 1 cross outWhat happens to the price level and real output as the self correction mechanism closes an inflationary gap? 0 a. The price level increases and real output decreases O b The price level decreases and real output increases. 0 c. The price level increases and real output increases. 0 d. The price level decreases and real output decreases. cross out cross out cross out cross out