Question 1
When analyzing the effects of government spending, net taxes, and the
Z factors, what primarily matters is the shape of
◦ the
AD curve.
◦ the
AS curve.
◦ both the
AD curve and the
AS curve.
◦ neither the
AD curve nor the
AS curve.
Question 2
When analyzing the effects of cost shocks, what primarily matters is the shape of
◦ the
AD curve.
◦ the
AS curve.
◦ both the
AD curve and the
AS curve.
◦ neither the
AD curve nor the
AS curve.