1- Oui6ur

2- On the short run, the price of some cost are sticky meaning that it cannot
change fast. Labor is one of them because there are contracts so the wage
will not change regardless of the change in price levels. So for this reason if
the price level goes up since the wages which is a part of the cost is constant,
the cost will not increase as much which is an incentive for the producer to
produce more. And the decrease in price levels will lead to less production
due to same logic. So it shows that on the short run, aggregate supply is
upward sloping. But in the long run since the contracts can be changed and
nothing is sticky anymore the level of output is not dependent on price levels
so its a vertical line.
3- Y= C+I+G+NX
C= C1+c(Y-T)
G=G1-bY-iY

4- In the short run as we know the government spending will shift the AD line (a
change in government spending will change AE which will change the
aggregate demand. As an example an increase in government spending will
increase AE which will lead to a higher demand) and the short run equilibrium
will change. But in the long run since the AS line is not dependent to price
levels and its a vertical line, the shift in AD line wont change the equilibrium.
5- This is a shortage in resources which leads to a shift to left in long run
aggregate supply curve. And this will affect both the price level and output
level. (output decreases and price increases)
6- It might be helpful, but it shows the perfect situation which there are full
employment are optimal use of resources and in general is almost impossible
to achieve. The more important task is trying to decrease the gap between
actual and potential output. But to increase potential output they can fund
Research and Development which can lead to higher technology or finding
new resources.
7- The IS curve shows every point on AE equilibrium with different level of
interest rate. So one can drive IS from AE by plotting all the equilibrium points
of output on one axe while having the interest rate on the other