If public goods can be produced more efficiently, then A) ...

[Coya19@aol.com]

If public goods can be produced more efficiently, then
 
  A) public goods increase, and private goods may increase or decrease.
  B) public goods production stays the same, and private goods increase.
  C) public goods and private goods both increase.
  D) public goods production falls, and private goods production rises.

Question 2

The oil shock of 2007-2008 saw the price of oil rising from less than 60 a barrel in March 2007 to over 145 a barrel in July 2008, and decreasing again to just over 30 a barrel in December 2008.
 
  Assuming the economy was at potential GDP prior to the oil shock, the increase in the price of oil, such as what occurred between March 2007 and July 2008, acts as a negative supply shock, causing the inflation rate to ________ and the output gap to ________. A) increase; become negative
  B) increase; become positive
  C) decrease; become negative
  D) decrease; become positive

[dmurph1496]

Answer to Question 1

A

Answer to Question 2

A

[Coya19@aol.com]

Thank you

[dmurph1496]

Happy to help you