24. The aggregate demand and aggregate supply model helps explain: A. output fluctuations in an individual market. B. price fluctuations in an individual market. D. short-run fluctuations in real GDP...

24. The aggregate demand and aggregate supply model helps explain: A. output fluctuations in an individual market. B. price fluctuations in an individual market. D. short-run fluctuations in real GDP and the price level. 25. The level of long-run aggregate supply is not affected by changes in: A. the capital stock B. technology. C. the size of the labour force. D. the expected inflation rate. 26.If potential GDP is equal to $1500 billion, what does the long-run aggregate supply curve look like? A. It is a vertical line at $1500 billion of GDP B. It is a horizontal line at $1500 billion of GDP C. It is a vertical line at a level of GDP above $1500 billion. D. It is a vertical line at a level of GDP below $1500 billion. 27.If technological change occurs in the economy the long-run aggregate supply curve will shift to the left.X B. A. V economy will move down along the long-run aggregate supply curve. C. economy will move up along the long-run aggregate supply curve. D. long-run aggregate supply curve will shift to the right 28. Short-run macroeconomic equilibrium occurs when: A. the price level is constant in the short run. B. the equilibrium lies on the long-run supply curve. C. aggregate demand equals short-run aggregate supply. D. Both B and C are correct. 29. Why might the short-run aggregate supply curve shift to the right in the long run, following a decrease in aggregate demand? A. Workers and firms adjust their expectations of wages and prices upward and they push for higher wages and prices. B. Workers and firms adjust their expectations of wages and prices downward and they accept lower wages and prices. C. Workers and firms adjust their expectations of wages and prices downward and they push for higher wages and prices. D. Workers and firms adjust their expectations of wages and prices upward and they accept lower wages and prices 30. What happens to the equilibrium in the money market if there is a decrease in real income? A. An increase in the quantity of money B. A decrease in the quantity of money C. An increase in interest rate D. A decrease in interest rate Page 7 of 17 please see next page