I need help answering and explaining the following questions

I need help answering and explaining the following questions.

An increase in the aggregate price level will increase: O a) the quantity of aggregate output demanded. O b) aggregate demand O c) short-run aggregate supply. O d) the quantity of aggregate output supplied in the short run.

Solution

Ans) D is the correct option. There is a positive relationship between price level and the quantity supplied. So when the price level increases the quantities of aggregate supplied increases in the short run.

Ans) B is the correct option. Lower wages well result in gradual shift from SRAC1 to SRAC2. The output is below the full employment level labor demand is lower than labor supplied which means workers are ready to work at lower levels and this reduces cost of production which leads to increase in aggregate supply and shifts SRAC1 to SRAC2.

Ans) C is the correct option. Real gdp per capita increased because the real gdp increased at a faster rate than population

growth rate of real gdp = (106-100)/100 =6%

Population growth rate = (51-50)/100=2%

Growth rate of real gdp is greater than population growth rate making real gdp is increased.