In the aggregate demandaggregate supply model, which of these ...

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In the aggregate demandaggregate supply model, which of these changes is most likely when the cost of production increases in the long run?
 a. A leftward shift of the short-run aggregate supply curve
  b. A leftward shift of the short-run aggregate demand curve
  c. A rightward shift of the short-run aggregate supply curve
  d. An increase in the potential output level increases.
 e. A decrease in the actual price level decreases.

Question 2

In the aggregate demand-aggregate supply model in the short run, a decrease in the money supply is likely to cause a(n):
 a. increase in both the price level and real GDP.
 b. decrease in both the price level and real GDP.
 c. increase in real GDP and a decrease in the price level.
  d. decrease in real GDP and an increase in the price level.
  e. increase in the price level only.

[juicepod]

Answer to Question 1

a

Answer to Question 2

b

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TYSM

[shewald78]

Excellent