Question 1
A rightward shift in the aggregate demand curve generates a ________ inflation and ________ output.
◦ demand-pull; lower
◦ cost-push; higher
◦ demand-pull; higher
◦ cost-push; lower
Question 2
A sudden increase in the price of oil causes a ________ inflation and ________ output.
◦ demand-pull; lower
◦ cost-push; higher
◦ demand-pull; higher
◦ cost-push; lower