Given the aggregate demand curve, a beneficial supply shock will: ...

[genevieve1028]

Given the aggregate demand curve, a beneficial supply shock will:
 a. increase potential output and the price level.
 b. decrease potential output and the price level.
 c. increase potential output and decrease the price level.
  d. decrease potential output and increase the price level.
  e. cause no change in potential output or the price level.

Question 2

If the money supply in an economy is 300, the price level is 4, and real GDP is 1,500, what is the nominal value of output?
 a. 1,200
 b. 4,500
 c. 6,000
 d. 180,000
  e. 500

[Missbam101]

Answer to Question 1

c

Answer to Question 2

c