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Question 26 With a vertical long run AS curve, any attempt by the government to reduce GDP through decrease in aggregate demand will lead to Select the correct answer below decrease in GDP with no corresponding deflation in the long run decrease in both GDP and the price level in the long run decrease in the price level with no effect on GDP in the long run decrease in the price level with no corresponding decrease in GDP in the short run Question 27 If an economy at full employment experiences a moderate rise in aggregate demand, what are the consequences? Select the correct answer below: Unemployment ession Inflation Hyperinflation Question 28 The Federal Reserve System is responsible for tracking the amounts of M1 and M2 and prepares a weekly release of information about the money supply. The table below shows the U.S. money stock components of M1 and M2. Use the table to calculate total M1. Round to the third decimal place. Components of M and M2 in the U.S. trillions $5.000 Currency $0.740 Individual market mutual fund balances $3.200 Demand deposits and other checking accounts $8.446 Savings accounts $0.004 Traveler's checks $0.453 Time deposits Provide your answer below: Question 34 Neoclassical economists believe that a stable level of output occurs when the economy reaches Select the correct answer below: zero unemployment the natural level of unemployment low levels of unemployment high levels of unemployment Question 35 If wages could fall immediately with the fall in demand, the economy would Select the correct answer below: remain in equilibrium need a stimulus from government go into a recession face high inflation

Answer 1

Question 26-28 are not visible, so cannot be answered.

Ans 34:

Stable levels of output occurs when the economy reaches the natural level of unemployment.

Ans 35

If wages could fall immediately with the fall in demand, the economy would remain in equilibrium because at equilibrium the quantity supplied and quantity demanded are equal.