QUESTION 3 A decrease in long run aggregate supply could be caused by O fewer re

Question

QUESTION 3 A decrease in long run aggregate supply could be caused by O fewer regulatory impediments to business. O a rapid increase in tareffs and protectionism. O the discovery of new oil reserves in another country. O a decrease in taxes QUESTION 4 The aggregate demand curve shows the relationship between planned purchases of O all final goods and services and the price level. o all final goods and services and interest rates. O all final goods and services and total planned production. O all final goods and services and nominal GDP QUESTION 5 The interest rate effect is part of the reason O the long-run aggregate supply curve is upward sloping. the long-run aggregate demand curve is upward sloping C) the long-run aggregate demand curve is downward sloping. d) the long-run aggregate supply curve is vertical.

Explanation / Answer

3> c

Reason

Discovery of oil in another country may make the extraction of oil in that country inefficient, thus the supply curve may shift to the left.

4> a

Reason

It is a graph which involves real gdp and price.

5> d

It is independent of the price level in the long run.

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