An expansionary gap in the short-run results in: a. lower ...

[erika]

An expansionary gap in the short-run results in:
 a. lower resource prices in the long run.
  b. unemployment in the long run.
 c. a recessionary gap in the long run.
 d. cost-push inflation in the long run.
 e. demand-pull inflation in the long run.

Question 2

All other things constant, if the interest rate decreases on account of a monetary policy:
 a. the demand for investment curve shifts to the right.
 b. the demand for investment curve shifts to the left.
 c. there is a downward movement along the demand for investment curve.
  d. there is an upward movement along the demand for investment curve.
  e. real GDP decreases.

[fauacakatahaias]

Answer to Question 1

d

Answer to Question 2

c

[erika]

Great answer, keep it coming

[chjcharjto14]

Thanks for the timely response, appreciate it