Which of the following is most likely to cause the long-run aggregate supply curve to shift rightward?
a. A rise in energy prices
b. A drop in the actual price level
c. An increase in the demand for leisure hours
d. An increase in the level of investment spending that is less than the depreciation of the capital stock
e. A technological breakthrough with widespread practical applications
Question 2
The Fed uses the federal funds rate to pursue its twin goals of:
a. exchange rate stability and maximum GDP.
b. interest rate stability and maximum GDP.
c. deflation and maximum GDP.
d. price stability and maximum employment.
e. interest rate stability and maximum employment.
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