Which two aggregate expenditure schedules AE in the diagram for a private closed economy have the same MPC, assuming investment is the same at each level of income?

Similarly to the Latin American region, the HPAE experienced a Lost Decade in the 1980s

Indicate whether the statement is true or false

Suppose the economy is at a short-run equilibrium GDP that lies above potential GDP. Which of the following will occur because of the automatic mechanism adjusting the economy back to potential GDP?

A) Output will increase. B) Prices will decline. C) Unemployment will decline. D) Short-run aggregate supply will shift to the left.