Need some help answering and understanding these questions t

Need some help answering and understanding these questions! thanks in advance!

9. Aggregate demand shifts right if at a given price level (a) taxes rise and shifts left if the money supply increases (b) taxes rise and shifts right if the money supply increases (c) taxes fall and shifts left if the money supply increases (d) taxes fall and shifts right if the money supply increases 10. Suppose that political instability in other countries makes people fear for the value of their assets in these countries so that they desire to purchase more U.S assets. What would the change in the exchange rate make happen to U.S. net exports and U.S aggregate demand? (a) Net exports would rise which by itself would increase U.S. aggregate demand. (b) Net exports would rise which by itself would decrease U.S. aggregate demand (c) Net exports would fall which by itself would increase U.S. aggregate demand. (d) Net exports would fall which by itself would decrease U.S. aggregate demand 11. The classical dichotomy and monetary neutrality are represented graphically by (a) an upward-sloping long-run aggregate-supply curve (b) a vertical long-run aggregate-supply curve. (c) an upward-sloping short-run aggregate-curve. (d) a downward-sloping aggregate-demand curve

Solution

9) Aggregate demand shifts right if taxes fall and also shifts right if money supply increases.

Anything that leads to increase in purchasing power of the consumer at the same price will make aggregate demand to shift to right. A fall in taxes gives more money in the hand of the consumer and hence increases the demand at same price level making AD to shift to right.

10) This will lead to (d) Net exports would fall which by itself would decrease US aggregate demand

The dollar value appreciates making it more compared to other nations currency, this will make exports unattractive and hence exports will fall. A fall in exports and increase in imports lead to fall in US aggregate demand.

11) Classical dichotomy and monetary neutrality are represented by (b) a vertical long run aggregate supply curve.

Let us see why, sticky wages leads to reduction in the real costs of production with a greater than expected increase in the price which inturn impact the aggregate quantity of good and services and they rise