1. Explain how the following changes in aggregate demand or short-run aggregate supply, other things held unchanged, are likely to affect the level of total output and the price level in the short run.a. An increase in aggregate demandb. A decrease in aggregate demandc. An increase in short-run aggregate supplyd. A reduction in short-run aggregate supply2. Explain why a change in one component of aggregate demand will cause the aggregate demand curve to shift by a multiple of the initial change.3. Use the model of aggregate demand and short-run aggregate supply to explain how each of the following would affect real GDP and the price level in the short run.a. An increase in government purchasesb. A reduction in nominal wagesc. A major improvement in technologyd. A reduction in net exports

23:49 Description X Reflect on the major topics of this unit and answer any three of the problems at the end of chapter seven in the text book. Be sure to consider alternative perspectives as you answer the problems