$1)$ The aggregate supply curve illustrates the

a$)$ relationship between the price level and the aggregate quantity of goods and services purchased by consumers, investors, governments, and foreigners $($net exports$).$

b$)$ relationship between the price level and the full employment level of output.

c$)$ relationship between the real wage rate and the quantity of labor supplied by households.

d$)$ various quantities of goods and services producers will supply at different price levels.

$2)$ Which of the following is most likely to cause an increase in short$-$run aggregate supply in the goods and services market?

a$)$ a decline in the productivity of labor

b$)$ an increase in expected prices

c$)$ a reduction in resource prices

d$)$ an increase in the price level

$3)$ Starting with initial long$-$run equilibrium, a sudden increase in optimism about future business conditions will cause $($in the short run$)$:

a$)$ an increase in output and a reduction in the price level.

b$)$ an increase in both output and the price level.

c$)$ a reduction in both output and the price level.

d$)$ a reduction in output and an increase in the price level.

$4)$ Suppose a decline in productivity causes short$-$run aggregate supply to decrease. The economy would experience:

a$)$ a decrease in unemployment.

b$)$ a decrease in the price level.

c$)$ hyperinflation.

d$)$ stagflation.