Which of the following is true of a beneficial supply shock?
a. It can lead to a temporary lower price level.
b. It can create a recessionary gap.
c. It can permanently decrease the economy's price level.
d. It can shift the aggregate demand curve rightward.
e. It can shift the aggregate demand curve leftward.
Question 2
Which of the following identities describe the equation of exchange?
a. Money in circulation prices = velocity income
b. Money in circulation income = velocity prices
c. Real GDP = money in circulation velocity
d. Nominal GDP = money in circulation velocity
e. Real GDP = prices money in circulation velocity
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