On the horizontal segment of the aggregate supply curve, real GDP can increase without causing an increase in the price level

If the AD curve shifts rightward while the AS curve and potential GDP don't change, then

A) there will be no change in real GDP, so the economy is at the trough of the cycle. B) the expansion phase of the business cycle occurs. C) there will be no change in real GDP, so the economy is at the peak of the cycle. D) the economy will move from a peak into recession. E) real GDP does not change.

The tables above give the purchases of an average consumer in a small economy. (These consumers purchase only shampoo and pizza.) Suppose 2015 is the reference base period

a) What is the cost of the CPI basket in 2015 and 2016? b) What is the CPI in 2015 and in 2016? c) What is the inflation rate between 2015 and 2016?