Which of the following supply shocks would shift the aggregate ...

[CBme]

Which of the following supply shocks would shift the aggregate supply curve inward?
 a. A decrease in business taxes
 b. A decrease in gasoline taxes
 c. A decrease in the cost of raw materials
 d. A decrease in agricultural output
 e. A decrease in the amount and cost of government regulation

Question 2

In an economy in which velocity is constant and real output grows at an average rate of 4 percent per year, a 4 percent average rate of growth in the money supply would result in:
 a. a constant price level.
 b. a slowly increasing price level.
  c. a rapidly increasing price level.
  d. constant real GDP.
 e. constant nominal GDP.

[ttt030911]

Answer to Question 1

d

Answer to Question 2

a

[CBme]

Thank you

[ttt030911]

No problemo