Suppose that the economy begins at a long-run equilibrium. Which ...

[tfester]

Suppose that the economy begins at a long-run equilibrium. Which of the following raises the price level and decrease real GDP in the short run?
 
  A) a decrease in the quantity of money
  B) an increase in the price of oil that decreases aggregate supply
  C) an increase in the stock of capital that increases aggregate supply
  D) an increase in government expenditures

Question 2

On the island country of Sunshine where the unit of currency is fish, net exports are 50 fish, saving is 250 fish, net taxes are 100 fish, and the government budget deficit is 175 fish. What is the value of investment?
 
  A) 375 fish
  B) -375 fish
  C) 25 fish
  D) -25 fish

[Meganchabluk]

Answer to Question 1

B

Answer to Question 2

C

[tfester]

TYSM

[elyse44]

YES! Correct, THANKS for helping me on my review