Answer : 1) The answer is option a.
If aggregate demand increase then the aggregate demand (AD)
curve shift to rightward. So, for a given aggregate supply curve if
aggregate demand increase then the AD curve will shift to
rightward. As a result, the real GDP will increase and the price
will also increase. Hence except option a other options are not
correct. Therefore, option a is the correct answer.
2) The answer is option c.
If aggregate demand decrease then the aggregate demand (AD)
curve shift to leftward. So, for a given aggregate supply curve if
aggregate demand decrease then the AD curve will shift to leftward.
As a result, the real GDP will decrease and the price will also
decrease. Hence except option c other options are not correct.
Therefore, option c is the correct answer.