A decrease in aggregate demand causes a decrease in ________ only ...

[luminitza]

A decrease in aggregate demand causes a decrease in ________ only in the short run, but causes a decrease in ________ in both the short run and the long run.
 
  A) the price level; real GDP B) the price level; the price level
  C) real GDP; real GDP D) real GDP; the price level

Question 2

Robert Lucas argues that there are ________ returns to human capital, and these productivity increases are not completely captured by individuals as they decide how much education to purchase.
 
  As a result, the market produces ________ education and training.
  A) increasing; too little B) increasing; too much
  C) decreasing; too little D) decreasing; too much

[Carliemb17]

Answer to Question 1

D

Answer to Question 2

A

[luminitza]

Thank you

[Carliemb17]

Happy to help you