Shocks to long-run aggregate supply can be a source of business ...

[schs14]

Shocks to long-run aggregate supply can be a source of business fluctuations ________.
 
  A) only in real business cycle models
  B) only in new Keynesian models
  C) in both real business cycle and new Keynesian models
  D) only if the money supply rises

Question 2

In the new Keynesian model, an ________ increase in productivity will impact ________.
 
  A) unanticipated; both aggregate demand and aggregate supply
  B) anticipated; both aggregate demand and aggregate supply
  C) anticipated; aggregate demand, but not aggregate supply
  D) unanticipated; aggregate demand, but not aggregate supply

[debra928]

Answer to Question 1

C

Answer to Question 2

B