Question: please stTe the correct to 13 and 14 and explain why the other answer choices are wrong K 13. Stagflation is most likely to be

please stTe the correct to 13 and 14 and explain why the other answer choices are wrong

please stTe the correct to 13 and 14 and explain why the

K 13. Stagflation is most likely to be caused by A. an increase in aggregate demand B. a decrease in aggregate demand increase in-aggregate supply D. a decrease in aggregate supply E . a large increase in the money supply 14. According to the graph below, an increase in aggregate supply will most likely cause income and employment to change in which of the following ways? Aggregate Supply PRICE LEVEL Aggregate Demand GROSS DOMESTIC PRODUCT X A. Income: Decrease Employment: Decrease B. Income: Decrease Employment: Increase G Income. No Change Employment. Increase- Taut Stode as It D. Income: Increase Employment: Decrease E. Income: Increase Employment: Increase 15. An increase in military spending will affect an economy in which of the followin ways in the short run? A. Aggregate supply will increase. B. Aggregate supply will decrease. C. Aggregate demand will increase. D. Aggregate demand will decrease. E. The price level will decrease. - 2

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