When Fed policy is being used to offset an inflationary gap, ...

[Pineapplelove6]

When Fed policy is being used to offset an inflationary gap, which of the following variables increases as a result?
 a. Aggregate demand.
  b. Investment.
 c. Net Exports.
 d. Interest rates.

Question 2

If natural gas is replaced by solar power as a more efficient form of energy, we should expect _____.
 a. a leftward shift of the aggregate supply curve
  b. higher production prices at every output level
  c. a decline in the growth of total output
  d. a decrease in the stock of energy-efficient capital goods
  e. an increase in total factor productivity

[zogaridan]

Answer to Question 1

d

Answer to Question 2

e

[Pineapplelove6]

Thanks for the timely response, appreciate it

[LVPMS]

Excellent