An adverse supply shock would shift: a. only the short-run ...

[cmoore54]

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.

[paavo]

Answer to Question 1

e

Answer to Question 2

b

[cmoore54]

Thanks for the timely response, appreciate it

[helenmarkerine]

YES! Correct, THANKS for helping me on my review