The aggregate demand curves in Figure 13.1 have a ...

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The aggregate demand curves in Figure 13.1 have a positively-sloped portion. The reason this can happen is ________.
 
  A) sloppy editing
  B) the monetary policy response to declining inflation causes the real interest rate to fall, which causes output to rise
  C) a sudden increase in potential output
  D) changes in expected inflation cause the real interest rate to change in the opposite direction
  E) rising inflation causes financial frictions to increase

Question 2

Which of the following is (are) likely to cause the marginal product of an input to decrease?
 
  A) an increase in the real price of the input
  B) a decrease in the quantity of the input used in production
  C) technological advances
  D) all of the above
  E) none of the above

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Answer to Question 1

D

Answer to Question 2

E

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TYSM

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Gracias!