In 2008, Japan's government approved a 1 trillion fiscal stimulus ...

[pragya sharda]

In 2008, Japan's government approved a 1 trillion fiscal stimulus plan comprised of both tax cuts and government expenditure increases. As a result
 
  A) Japan's aggregate demand curve shifted rightward.
  B) Japan's aggregate supply curve shifted leftward.
  C) Japan's aggregate demand curve shifted leftward.
  D) Japan's long-run aggregate supply curve shifted leftward.

Question 2

The figure above shows the demand and supply of dollars in the foreign exchange market. At a price of 1.20 Brazilian reals per dollar
 
  A) there will be a shortage of dollars.
  B) 120 billion dollars will be supplied.
  C) 40 billion dollars will be demanded.
  D) there will be a surplus of dollars.

[macmac]

Answer to Question 1

A

Answer to Question 2

A