Other things equal, an increase in aggregate supply will cause: ...

[Lisaclaire]

Other things equal, an increase in aggregate supply will cause:
 a. a decrease in equilibrium real GDP and a decrease in the equilibrium price level.
  b. an economic contraction.
  c. an increase in equilibrium real GDP and an increase in the equilibrium price level.
  d. cost-push inflation.
  e. a reduction in unemployment and a decline in inflation.

Question 2

Which of the following is a statement of positive economics?
 a. New tax laws are needed to help the poor.
 b. Teenage unemployment should be reduced.
 c. We should increase Social Security payments to the elderly.
  d. An increase in tax rates will reduce unemployment.

[blakcmamba]

Answer to Question 1

e

Answer to Question 2

d