An Increase in investment spending causes the aggregate* in the short run , celeris paribus . demand ; right demand ; left a supply; right curve to…

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5 .An Increase in investment spending causes the aggregate*in the short run , celeris paribus .d .demand ; rightdemand ; leftasupply; rightcurve to shift to thesupply; leftUse the graph below to answer question 6:Price LevelI SRASANDDE ON Real GDP6 .The diagram above shows an economy experiencing :a .an inflationary gapa recessionary gap .d .short – run equilibrium at full – employment .long – run equilibrium .7 .If the short – run equilibrium level of real GDP is greater than full -employment real GDPthen the economy is in a ( n )rate of unemployment .gap with unemploymentinflationary ; abovethe naturalinflationary ; belowrecessionary ; above8 .recessionary ; belowd .A breakthrough in technology used in production that shifts SRAS to the right results ina lower price level at a higher level of real GDPC .a lower price level at a lower level of real GDPd .a higher price level at a lower level of real GDPa higher price level at a higher level of real GDP.9 .If the economy is initially in equilibrium at the full – employment level of real GDP and *growing economy boosts consumer and investor confidence , ceteris paribus , thea .aggregate demand curve will shift to the*left ; risecausing the price level toright ; fallleft; fall10 .right ; rised .When the actual level of output produced is less than the full – employment level of output*the actual unemployment rate exceeds the natural unemployment rate*C .the actual unemployment rate is less than the natural unemployment rate .d .the actual unemployment rate is equal to the natural unemployment rate*the economy is in long – run equilibrium .Chapter 6 Assignments130

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