Along the intermediate range of the aggregate supply curve, an ...

[Bob-Dole]

Along the intermediate range of the aggregate supply curve, an increase in the aggregate demand curve will increase:
 a. both the price level and real GDP.
  b. only real GDP.
  c. only the price level.
  d. real GDP and reduce the price level.

Question 2

If the economy is experiencing an inflationary gap, classical economists argue that the Federal Reserve should lower interest rates.
 a. True
  b. False
  Indicate whether the statement is true or false

[ecabral0]

Answer to Question 1

a

Answer to Question 2

False