When consumers suddenly become more pessimistic about the ec…

When consumers suddenly become more pessimistic about the economy, a negative aggregate demand shock shifts the:   a.  LRAS curve inward, reducing the real growth rate in the short run.   b.  LRAS curve outward, reducing the real growth rate in the short run.   c.  AD curve inward, reducing the real growth rate in the short run.   d.  AD curve outward, reducing the real growth rate in the short run.

When the Federal Reserve increases the growth rate of the mo…

When the Federal Reserve increases the growth rate of the money supply to combat a negative real shock, the growth rate of real GDP:   a.  will increase more than the inflation rate.   b.  will increase less than the inflation rate.   c.  and the inflation rate will both increase by the same amount.   d.  and the inflation rate will both decrease by the same amount.