Answer Happy

14. The price level rises in the short run if a. aggregate demand or aggregate supply shifts left. b. aggregate demand shifts right or aggregate supply shifts left. c. aggregate demand shifts left or aggregate supply shifts right d. aggregate demand or aggregate supply shifts right. 15. In the short-run an increase in the costs of production makes a. both output and prices rise. b. output rise and prices full c. output fall and prices rise. d. both output and prices fall. 16. Which of the following would cause stagflation? a. Aggregate demand shifts right. b. Aggregate demand shifts left. c. Aggregate supply shifts right. d. Aggregate supply shifts left. 17. The effect of an increase in the price level on the aggregate-demand curve is represented by a a shift to the right of the aggregate-demand curve. b. shift to the left of the aggregate-demand curve. c. movement to the left along a given aggregate-demand curve. d. movement to the right along a given aggregate-demand curve. 18. The wealth effect, interest-rate effect, and exchange-rate effect are all explanations for a. the slope of short-run aggregate supply. b. the slope of long-run aggregate supply. c. the slope of the aggregate-demand curve. d. shifts in the aggregate-demand curve. 19. Monetary policy a. must be described in terms of interest-rate targets. b. must be described in terms of money supply targets. c. can be described either in terms of the money supply or in terms of the interest rate. d. cannot be accurately described in terms of the interest rate or in terms of the money supply. 20. An increase in the money supply will a. increase interest rates, decreasing investment and aggregate demand. b. reduce interest rates, increasing investment and aggregate demand. c. reduce interest rates, decreasing investment and increasing aggregate demand. d. increase interest rates, increasing investment and aggregate demand.