Author Question: Which of the following supply shocks will shift the long-run aggregate supply curve outward? a. An ... (Read 82 times)

laurencescou · **on:** Jun 30, 2018

Which of the following supply shocks will shift the long-run aggregate supply curve outward?
a. An increase in business taxes
b. An increase in gasoline taxes
c. An increase in the cost of raw materials
d. An increase in the amount and cost of government regulation
e. An increase in agricultural output

Question 2

According to the equation of exchange, if nominal GDP equals 6 trillion and the money supply equals 1 trillion, the velocity of money:
a. must be 6.
b. must be 1/6.
c. must be 6 trillion.
d. must be 1/6 trillion.
e. cannot be determined unless we know the price level.