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3.Evaluate whether each of the following statements is true or false. Explain your answer and provide supporting rationale. a.The short-run aggregate supply (SAS) curve slopes upward because households spend more as their incomes increase. b.The long-run aggregate supply curve can never shift. c.Either a decrease in the nominal money supply by the Federal Reserve, all else held constant, or an increase in the price level, all else held constant, will shift the aggregate demand (AD) curve to the left. d.The Keynesian portion of the short-run aggregate supply (SAS) curve would be relevant during a recessionary situation. e.Stagflation occurs when the aggregate demand (AD) curve shifts out on the upward sloping portion of the short-run aggregate supply (SAS) curve.
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