The short-run aggregate supply curve shows that inflation will ...

[codyclark]

The short-run aggregate supply curve shows that inflation will change as a result of changes in ________.
 
  A) output
  B) potential output
  C) expected inflation
  D) price shocks
  E) all of the above

Question 2

Assume that the economy is presently in equilibrium. A decline in the interest rate
 
  a. increases planned investment, aggregate demand, and equilibrium income.
  b. increases unplanned investment, reducing aggregate demand and equilibrium income.
  c. increases unplanned investment, increasing aggregate demand and equilibrium income.
  d. increases money demand, the money supply, aggregate demand, and equilibrium income.

[mmpiza]

Answer to Question 1

E

Answer to Question 2

A