Changes in the AD-AS Model in the Short Run

Which of the following could initiate inflation?

A decrease in short-run aggregate supply or an increase in aggregate demand

Assume the price level is increasing, real GDP is decreasing, and the unemployment rate is increasing. Which event would explain this macroeconomic situation?

A negative supply shock

Which of the following statements is a valid explanation of the change shown in the graph?

An economy experiences a positive supply shock, leading to short-run deflation.

Which of the following could occur with cost-push inflation?

An output decrease, employment decrease, and price level increase

What would happen to output, employment, and the price level if the government increased spending on infrastructure, ceteris paribus?

Output would increase, employment would increase, and the price level would increase.