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01 Multiple Choice 0/ 1 Which of the following will cause a rightward shi of the short-run aggregate supply curve? A. An increase in consumption spending B. An increase in nominal wages C. An increase in income taxes D. A decrease in the price level E. A decrease in the costs of production 02 Multiple Choice 0/ 1 Assume the marginal propensity to consume is 0.8. How will a decrease in government spending of $100 billion affect aggregate demand? A. Aggregate demand will decrease by $800 billion. B. Aggregate demand will decrease by $500 billion. C. Aggregate demand will increase by $400 billion. D. Aggregate demand will decrease by $100 billion. E. Aggregate demand will not change. 06 Multiple Choice 0/ 1 Which of the following is a reason why the aggregate demand curve is downward sloping? A. A higher price level decreases savings. B. A higher price level decreases interest rates. C. A higher price level increases exports. D. A higher price level decreases imports. E. A higher price level decreases real wealth. 07 Multiple Choice Because changes in the aggregate price level have no e'ect on aggregate output in the long run, the long-run aggregate supply curve is A. Vertical B. Horizontal C. Fixed D. Negatively sloped E. Positively sloped 0/1