QUESTION 6 When the aggregate price level changes, the AE-Planned curve shifts. If the price level goes up, the AE-Planned curve shifts.. 0 up, leading to less autonomous spending which will be equal to the higher output in the new equilibrium between income and aggregate planned spending 0 down, leading to more autonomous spending and eventually higher output in the new equilibrium between income and aggregate planned spending 0 down, leading to less autonomous spending and eventually lower output in the new equilibrium between income and aggregate planned spending 0 up, leading to more autonomous spending and eventually higher output in the new equilibrium between income and aggregate planned spending QUESTION 7 If the economy is in equilibrium and the real estate market collapses, what will likely happen? 0 The AD cun/e will shift rightward. O The AD cun/e will shift leftward. O The SRAS curve will shift rightward. O The SRAS curve will shift leftward. QUESTION 8 The short-run aggregate supply curve will shift to the right: 0 when productivity rises. 0 when input costs rise. 0 when taxes rise. 0 when interest rates rise. QUESTION 9 Suppose an economy is in short-mn equilibrium but the level of real GDP is less than potential output. Which of the following statements is tme? O In the long run, nominal wages will fall and the AD curve will shift right, restoring the economy to potential output. 0 In the long run, nominal wages will fall and the AD curve will shift left, restoring the economy to potential output. 0 In the long run, nominal wages will fall and the SRAS curve will shift right, restoring the economy to potential output. 0 In the long mn, nominal wages will fall and the SRAS curve will shift left, restoring the economy to potential output. QUESTION 10 Suppose short-mn equilibrium real GDP for an economy is greater than potential output. Which of the following market outcomes we should NOT expect: 0 to reach long-run equilibrium, the SRAS curve will shift to the left, resulting in a higher aggregate price level 0 the level of unemployment is higher than when the economy is at its full potential 0 nominal wages will have to adjust upward as the economy moves from the short run to the long run. 0 Real GDP and employment will be reduced once the economy goes back to its potential output