If the nominal interest rate is ________ and the inflation rate ...

[tsand2]

If the nominal interest rate is ________ and the inflation rate is ________, the real interest rate is positive.
 
  A) zero; positive B) negative; zero C) zero; negative D) negative; negative

Question 2

Both the long-run and short-run aggregate supply curves will shift when
 
  A) the endowments of the factors of production change.
  B) the government increases defense spending.
  C) an event occurs which is expected to last only a short period of time.
  D) they are both upward sloping.

[brittrenee]

Answer to Question 1

C

Answer to Question 2

A

[tsand2]

Excellent

[dantucker]

Wow, this really help