In the short run, a decrease in aggregate demand will lead to ...

[karateprodigy]

In the short run, a decrease in aggregate demand will lead to
 
  A) no change in the price level and a decrease in real GDP.
  B) an increase in the price level and a decrease in real GDP.
  C) a decrease in the price level and an increase in real GDP.
  D) an increase in the price level and an increase in real GDP.
  E) a decrease in the price level and an increase in the unemployment rate.

Question 2

If there is no Ricardo-Barro effect, an increase in the government budget surplus will
 
  A) lower the real interest rate.
  B) decrease the demand for loanable funds.
  C) raise the real interest rate.
  D) decrease the supply of loanable funds.
  E) not change the demand for loanable funds, the supply of loanable funds, or the real interest rate.

[Zack0mack0101@yahoo.com]

Answer to Question 1

E

Answer to Question 2

A

[karateprodigy]

Thank you

[Zack0mack0101@yahoo.com]

No problemo