Question: Please select the correct letter for each question, little to no explanation needed just simply the correct answer, thanks! 1: The economy's short run aggregate

Please select the correct letter for each question, little to no explanation needed just simply the correct answer, thanks!

1: The economy's short run aggregate supply (SRAS) curve is assumed to slope upward because

A: firms' unit costs rise as output increases

B: inputs become less expensive at higher levels of output

C: aggregate demand increases at higher levels of national income.

D: inputs become more expensive at higher levels of output.

E: firms' unit costs fall as output increases.

2: Consider the following news headline: "The Covid-19 virus event (and accompanying decrease in the world oil prices) causes Canadian exports to decrease." Assuming the aggregate output is demand-determined, what effect will this have, all other things equal, on the AE function and on equilibrium national income?

A: The AE function will rotate downward (become flatter) and national income will fall.

B: There will be no change in the AE function or in equilibrium national income.

C: The AE function will shift down parallel to itself and equilibrium national income will fall.

D: The AE function will rotate upward (become steeper) and equilibrium national income will rise.

E: The AE function will shift up parallel to itself and equilibrium national income will rise.

3: Other things being equal, if the price level rises exogenously, the aggregate expenditure (AE) function shifts

A: upward and the economy moves upward to the left along the AD curve.

B: down and the economy will move downward to the right along the AD curve.

C: to the right and the AD curve will also shift to the right.

D: upward and the economy moves downward to the right along the AD curve.

E: down and the economy will move upward to the left along the AD curve.

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