Question 12 Figure 35-3 INTEREST RATE (a) The Money Market (b) The Aggregate Demand Curve N5 QUANTITY OF MONEY Ö MO. PRICE LEVEL aa QUANTITY OF OUTPUT AD Refer to Figure 35-3. Which of the following sequences (numbered arrows) shows the logic of the interest-rate effect on the slope of aggregate demand? O 1,2,3,4 O 1,4,3,2 O 3, 4, 2, 1 O3, 2, 1, 4 1 pts

Question 14 Figure 34-3 INTEREST RATE “← (a) The Money Market O b. 1, 2, 3, 4 O c. 1, 4, 3, 2 d. 3, 2, 1, 4 MS 2 QUANTITY OF MONEY MD₂ MD, PRICE LEVEL 3 (b) The Aggregate Demand Curve a" ←à ←Y₂ 4 QUANTITY OF OUTPUT AD Refer to Figure 34-3. Which of the following sequences (numbered arrows) shows the logic of the interest-rate effect on the slope of aggregate demand? O a. 3, 4, 2, 1

Suppose that the table presented below shows an economy's relationship between real output and the inputs needed to produce that output: Input Quantity Real GDP 150.0 $ 400 112.5 300 75.0 200 Instructions: Enter your responses answers rounded to 2 decimal places. a. What is the level of productivity in this economy? b. What is the per-unit cost of production if the price of each input unit is $2? $ C. Assume that the input price increases from $2 to $3 with no accompanying change in productivity. What is the new per-unit cost of production? In what direction would the $1 increase in input price push the economy's aggregate supply curve? (Click to select) v What effect would this shift of aggregate supply have on the price level and the level of real output? O The price level would decrease and real output would increase. O Both the price level and real output would remain the same. O The price level would decrease and real output would remain the same. O The price level would increase…

Question 1) a) In panel (a) the curve shifts upward, what could cause this? O Increase in G (govermment spending)O Decrease in HH wealth due to a decrease in housing pricesO An increase in the overall price levelo Areduction in govemment spending (G) b) Using Figure 2, if this economy is currently at Y1 and consumer wealth increases, then___O AD1 will shift to the left, reflecting a decrease in the real GDP at every price level.O AD1 willshift to the right. reflecting an increase in the real GDP at every price level.O an upward movement along the AD1 wiltake place., reflecting an increase in the price level.O a downward movement along the AD1 will take place, reflecting a decrease in the price level.