he long run aggregate supply curve is a vertical line. This means that what we can roduce in the long run is When people buy more as a result of increased consumer confidence lect one: a. negatively related to the change in the price level. Select one: b. is directly related the change in the price level. a. the aggregate supply curve shifts right. determined not by price level but by the availability of factors of production and technology. b. the aggregate demand curve shifts left. c. the aggregate demand curve shifts right. d. the aggregate supply curve shifts left. the economy is creating more output than its full employment level and if prices are When the overall effect of decisions about taxation and spending is to reduce aggre ing, the government can use the demand, we call it a lect one: Select one: a. contractionary fiscal policy to bring the economy back to full employment. a. contractionary fiscal policy. b. all of these are correct statements. b. inflationary policy. C. contractionary fiscal policy to expand the economy beyond full employment level. c. business cycle policy d. expansionary fiscal policy to bring the economy back to full employment. . d. expansionary fiscal policy