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.
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