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Question 1 (1 point) Potential or full-employment output is the real GDP that would be realized if the economy's resources were fully employed at a normal capacity. True False Question 2 (1 point) Equilibrium occurs where real GDP equals planned aggregate expenditures (or GDP = AE). True False Question 3 (1 point) An increase in aggregate demand (given no change in aggregate supply) will cause higher inflation. True False Question 4 (1 point) In the Aggregate Expenditure (AE) Model, consumption (C) is assumed to rise with increases in real GDP-and fall with decreases in real GDP. True False