Question 1
For an economy to experience both a recession and inflation at the same time
◦ the aggregate supply curve must shift to the right.
◦ the aggregate supply curve must shift to the left.
◦ the aggregate demand curve must shift to the left.
◦ the aggregate demand curve must shift to the right.
Question 2
A(n) ________ in inflationary expectations that causes firms to decrease their prices shifts the aggregate supply curve to the ________.
◦ increase; right
◦ increase; left
◦ decrease; right
◦ decrease; left