If the economy is above full employment, there is ________ gap, ...

[aabwk4]

If the economy is above full employment, there is ________ gap, and as the economy adjusts toward full employment, the price level ________.
 
  A) a recessionary; rises
  B) an inflationary; falls
  C) a recessionary; falls
  D) an inflationary; does not change
  E) an inflationary; rises

Question 2

When the U.S. interest rate ________ relative to foreign interest rates, the supply of dollars ________ and the supply curve of dollars shifts rightward.
 
  A) rises; increases
  B) rises; does not change
  C) falls; decreases
  D) falls; increases
  E) rises; decreases

[mmj22343]

Answer to Question 1

E

Answer to Question 2

D