In the short run, a decrease in aggregate demand will decrease: Multiple Choice the price level and have no effect on output. the price level and increase output. both output and the price level. the output and have no effect on the price level.

Which of the following will not shift the long run aggregate supply curve to the left   A. Major natural events resulting in the destruction of economic infrastructure   B. Increase in unemployment during recessions   C. Decrease in the labor force participation   D. ongoing political unrests and political instability.

Consider each of the following events and then figure out how each of these events will affect the aggregate demand curve. a. An increase in the price level will cause a b. An increase in government purchases will cause a c. An increase in state income taxes will cause a d. An increase in interest rates will cause a e. A faster income growth in other countries will cause a the aggregate demand curve. the aggregate demand curve. the aggregate demand curve. the aggregate demand curve. the U.S. aggregate demand curve.

If the price level rises and the money wage rate  rises by the same percentage, what happens to the quantity of real GDP supplied? Along which aggregate supply curve does the economy move?