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What is the answer? 1. The equilibrium price level and equilibrium level of real GDP occur at the intersection of the aggregate demand (AD) curve

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1. The equilibrium price level and equilibrium level of real GDP occur at the intersection of the aggregate demand (AD) curve and the SR aggregate supply (SAS) curve. (True or False) 2. An increase in imports (independent of a change in the price level) will increase both aggregate supply (AS) and aggregate demand (AD). (True or False) 3. True or false. A decrease in real GDP can be caused by either a decrease in aggregate demand or a decrease in aggregate supply (SAS shift left). (True or False) 4. True or false. The wealth effect says an increase in the price level (PL) increases real wealth balances. (True or False) 5. True or false. Fiscal policy can be used to increase G and therefore increase AD. (True or False)

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