Prices of smartphones (assume that this is a normal good) have ...

[Ebrown]

Prices of smartphones (assume that this is a normal good) have fallen in recent years. Over this same period, the price of the components used to produce smartphones has also fallen and consumer incomes have risen.
 
  Which of the following best explains the falling prices of smartphones?
  A) The supply curve for smartphones has shifted to the right while the demand curve for smartphones has shifted to the left.
  B) The supply curve for smartphones has shifted to the right more than the demand curve has shifted to the right.
  C) The demand curve and the supply curve for smartphones have both shifted to the left.
  D) The demand curve for smartphones has shifted to the right more than the supply curve has shifted to the right.

Question 2

What is the difference between fiscal policy and monetary policy?
 
  What will be an ideal response?

[LVPMS]

Answer to Question 1

B

Answer to Question 2

Fiscal policy involves changes in federal taxes and purchases and is implemented by Congress and the President. Monetary policy involves changes in the money supply and interest rates and is implemented by the Federal Reserve. Both are intended to achieve macroeconomic objectives.

[Ebrown]

Thanks for the timely response, appreciate it

[mcarey591]

Gracias!