In the short-run, higher prices can be caused by: a. A decrease ...

[sc00by25]

In the short-run, higher prices can be caused by:
 a. A decrease in aggregate supply, an increase in aggregate demand, or both.
  b. A decrease in aggregate supply, decrease in aggregate demand, or both.
  c. An increase in aggregate supply, increase in aggregate demand, or both.
  d. An increase in aggregate supply, a decrease in aggregate demand, or both.
  e. Central bank actions only.

Question 2

What is the exact nominal interest rate, when the real interest rate is 5 and the expected inflation rate is 15?
 a. 5
  b. 10
  c. 20.00
  d. 20.75
  e. 25.5

[zhanghao]

Answer to Question 1

.A

Answer to Question 2

.D

[sc00by25]

Thanks for the timely response, appreciate it

[upturnedfurball]

YES! Correct, THANKS for helping me on my review