Other things equal, what effect will each of the following have on the equilibrium price level and level of real output?a. An increase in aggregate demand in the steep portion of the aggregate supply curve.b. An increase in aggregate supply, with no change in aggregate demand (assume that prices and wages are flexible upward and downward).c. Equal increases in aggregate demand and aggregate supply.d. A reduction in aggregate demand in the relatively flat portion of the aggregate supply curve.e. An increase in aggregate demand and a decrease in aggregate supply.other things equal, what effect will each of the following have on the equilibriumprice level and level of real output?a. An increase in aggregate demand in the steep portion of the aggregate…