When the Fed sells bonds in the open market, interest rates _______ and aggregate demand shifts to the _______.

Aggregate output is ________ related to autonomous consumer expenditure, and is ________ related to the level of taxes

A) negatively; negatively B) negatively; positively C) positively; negatively D) positively; positively

Suppose the actual and expected price levels in an economy are initially equal. However, the actual price level falls eventually due to a change in economic conditions. Which of the following will occur over the long run?

a. The economy will move rightward along the short-run aggregate supply curve. b. The economy will move leftward along the short-run aggregate supply curve. c. The short-run aggregate supply curve will shift to the right. d. The short-run aggregate supply curve will shift to the left. e. The short-run aggregate supply curve will become flatter.