QUESTION 5 Other things being constant, what will be the effect of each of the following upon the aggregate expenditures (AE) curve and the equilibrium level of GDP ?. (6 points) Changes Change in aggregate Equilibrium level of GDP expenditures (AE) (increase or decrease) (shift up or down) (a) An increase in the amount of liquid assets consumers are holding (b) Decrease in the Canadian price level relative to other countries (c) A sharp increase in the interest rate QUESTION 6 Describe the change in short-run aggregate supply (AS) that should result from each of the following changes in determinants. Assume that nothing else is changing besides the identied change. Also describe the changes in GDP and price level (assume that the price level is flexible). (6 points) Changes Change in short Equilibrium level Equilibrium price run aggregate of GDP level supply (AS) (increase or (increase or (increase or decrease) decrease) decrease) (a) A rise in the average price of inputs (b) An increase in worker productivity