If potential GDP increases, then in the figure above the ...

[lunatika]

If potential GDP increases, then in the figure above the potential GDP line ________, and the aggregate supply curve ________.
 
  A) does not shift; does not shift
  B) shifts rightward; does not shift
  C) does not shift; shifts rightward
  D) shifts rightward; shifts rightward
  E) shifts rightward; shifts leftward

Question 2

If the monetary base does not change and the desired reserve ratio increases, the money multiplier ________ and the quantity of money ________.
 
  A) increases; decreases
  B) decreases; decreases
  C) increases; increases
  D) decreases; does not change
  E) decreases; increases

[apple]

Answer to Question 1

D

Answer to Question 2

B

[lunatika]

TYSM

[Mochi]

Excellent