For all the questions below select the appropriate answer:

l-or all the questions below select the appropriate answer: a) ADIAS and equilibrium output and plice. Refer to the diagram. If the economy in the diagram is at point Y0, the output gap would be eliminated in the short run by: O a decrease in Yp. 0 an increase in the price level. an increase in AD. 0 a decrease in AS. b) The aggregate demand - aggregate supply (AD -AS) model has the power to explain: 0 changes in real GDP without concern for the price level. 0 changes in the price level independent of real GDP. 0 changes in the world price and the production of crude oil. 0 changes in both real GDP and the price level, simultaneously. c) A rise in interest rates caused by a change in the general price level would cause a(n): 0 decrease in aggregate expenditure and a movement along the AD curve. 0 increase in aggregate expenditure and a movement along the AD curve. C) a decrease in aggregate expenditure and a rightward shift in AD curve. 0 increase in aggregate expenditure and a rightward shift in the AD curve. c) A rise in interest rates caused by a change in the general price level would cause a(n): 0 decrease in aggregate expenditure and a movement along the AD curve. 0 increase in aggregate expenditure and a movement along the AD curve. 0 a decrease in aggregate expenditure and a rightward shift in AD curve. 0 increase in aggregate expenditure and a rightward shift in the AD curve. d) Recent increases in the international prices of crude oil and basic commodities would: 0 shift the AD curve down to the left, lowering real GDP and the general price level. 0 shift the AS curve up to the left, lowering real GDP and raising the general price level. 0 move the economy to the left along the AS curve, lowering real GDP and the general price level. 0 shift the AS curve down to the right, increasing real GDP and lowering the general price level. 9) An AD/AS model Real GDP Refer to the diagram. Based on the AD -AS model illustrated: O a fall in AD from AD2 to AD1 would reduce equilibrium real GDP to Y1 at P1. 0 aggregate demand AD2 results in equilibrium real GDP Y2 at P2. 0 with constant AS conditions as described by A80, business cycle fluctuations are caused by uctuations in AD. all of the above