Author Question: An adverse supply shock would shift: a. only the short-run aggregate supply curve outward. b. only ... (Read 85 times)

cmoore54 · **on:** Jun 30, 2018

An adverse supply shock would shift:
a. only the short-run aggregate supply curve outward.
b. only the long-run aggregate supply curve outward.
c. only the long-run aggregate supply curve inward.
d. only the short-run aggregate supply curve inward.
e. both the long-run and the short-run aggregate supply curves inward.

Question 2

In an economy in which velocity of money in circulation is constant and real output grows at an average rate of 3 percent per year, a 5 percent average rate of growth in the money supply would result in a:
a. constant price level.
b. slowly increasing price level.
c. slowly decreasing price level.
d. stable 4 percent growth in real GDP.
e. stable 4 percent growth in nominal GDP.