If the Fed lowers the federal funds rate, eventually the A) AS ...

[saraeharris]

If the Fed lowers the federal funds rate, eventually the
 
  A) AS curve shifts rightward, decreasing real GDP and raising the price level.
  B) AS curve shifts leftward, decreasing real GDP and raising the price level.
  C) AD curve shifts leftward, decreasing real GDP and raising the price level.
  D) AD curve shifts leftward, decreasing real GDP and lowering the price level.
  E) AD curve shifts rightward, increasing real GDP and raising the price level.

Question 2

________ are inducements to act in certain ways.
 
  Fill in the blank(s) with correct word

[johnpizzaz]

Answer to Question 1

E

Answer to Question 2

Incentives

[saraeharris]

YES! Correct, THANKS for helping me on my review

[jomama]

Gracias!