Question 6(Multiple Choice Worth 2 points) (05.03 MC) The central bank increases the money supply by 3% over a long period while the country runs at full employment. In the long run, what does the quantity theory of money say will happen? The natural rate of unemployment will decrease by 3%. The price level will decrease by 3%. Unemployment will increase by 3%. O Nominal output will increase by 3%. Real output will increase by 3%.Question 12(Multiple Choice Worth 2 points) (05.05 MC) The economy depicted in this data table is closed, with no international trade of any kind. Government spending $40 billion Government transfer payments $20 billion Tax revenues $40 billion Private savings $60 billion Business capital investments $60 billion Based on the data above, which of the following must be true? The economy is in a recession. The economy has an inationary gap. l o The government is operating with a budget surplus. The government is borrowing in the loanable funds market. Public spending is exceeding private spending. Use the graph to answer the question that follows. Capital Goods Consumer Goods The economy experiencing the production possibilities curve change shown in the graph must have an increasing price level have its long-run Phillips curve shifting right have its long-run aggregate supply curve shifting right have cyclical unemployment have an unemployment rate of zero