Author Question: An expansionary gap in the short-run results in: a. lower resource prices in the long run. b. ... (Read 81 times)

erika · **on:** Jun 30, 2018

An expansionary gap in the short-run results in:
a. lower resource prices in the long run.
b. unemployment in the long run.
c. a recessionary gap in the long run.
d. cost-push inflation in the long run.
e. demand-pull inflation in the long run.

Question 2

All other things constant, if the interest rate decreases on account of a monetary policy:
a. the demand for investment curve shifts to the right.
b. the demand for investment curve shifts to the left.
c. there is a downward movement along the demand for investment curve.
d. there is an upward movement along the demand for investment curve.
e. real GDP decreases.