Answer the following statements true (T) or false (F)
1. When there is an increase in aggregate demand in the short run, there will be an increase in the price level but not in the level of output or employment.
2. When the economy is experiencing demand-pull inflation, its real GDP tends to be rising.
3. The oil crises of the 1970s and 1980s can best be illustrated as a shift of the aggregate demand curve to the left.
4. Cost-push inflation can be described as a rightward shift of the aggregate supply curve.
5. Minimum wage laws tend to make the price level more flexible rather than less flexible.
1. False
2. True
3. False
4. False
5. False
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