Which of the following supply shocks will shift the long-run ...

[laurencescou]

Which of the following supply shocks will shift the long-run aggregate supply curve outward?
 a. An increase in business taxes
 b. An increase in gasoline taxes
 c. An increase in the cost of raw materials
 d. An increase in the amount and cost of government regulation
  e. An increase in agricultural output

Question 2

According to the equation of exchange, if nominal GDP equals 6 trillion and the money supply equals 1 trillion, the velocity of money:
 a. must be 6.
 b. must be 1/6.
 c. must be 6 trillion.
 d. must be 1/6 trillion.
 e. cannot be determined unless we know the price level.

[stanleka1]

Answer to Question 1

e

Answer to Question 2

a

[laurencescou]

Wow, this really help

[kthug]

Thanks for the timely response, appreciate it