When potential GDP increases, A) there is a movement down ...

[Brittanyd9008]

When potential GDP increases,
 
  A) there is a movement down along the AS curve.
  B) there is a movement up along the AS curve.
  C) there is neither a movement along nor a shift in the AS curve.
  D) the AS curve shifts leftward.
  E) the AS curve shifts rightward.

Question 2

When the real interest rate falls, there is
 
  A) an upward shift of the consumption function.
  B) an increase in the slope of the consumption function.
  C) a movement upward along the consumption function.
  D) a decrease in the slope of the consumption function.
  E) a downward shift of the consumption function.

[Zack0mack0101@yahoo.com]

Answer to Question 1

E

Answer to Question 2

A