Hurricane Katrina destroyed oil and natural gas refining capacity ...

[ENagel]

Hurricane Katrina destroyed oil and natural gas refining capacity in the Gulf of Mexico. This subsequently drove up natural gas, gasoline, and heating oil prices. As a result, this should
 
  A) shift the short-run aggregate supply curve to the right.
  B) shift the short-run aggregate supply curve to the left.
  C) move the economy down along a stationary short-run aggregate supply curve.
  D) move the economy up along a stationary short-run aggregate supply curve.

Question 2

An increase in the government budget surplus will shift the ________ curve for loanable funds to the ________ and the equilibrium real interest rate will ________.
 
  A) demand; right; rise B) demand; left; fall C) supply; left; rise D) supply; right; fall

[yeungji]

Answer to Question 1

B

Answer to Question 2

D