During the Financial Crisis of 2007-2008, investors demanded much higher risk premiums in their investments. This caused the SML to:

Suppose that when the price of hamburgers increases, the Ruiz family increases their purchases of hot dogs. To the Ruiz family,

A) hamburgers and hot dogs are normal goods. B) hamburgers and hot dogs are substitutes. C) hamburgers and hot dogs are complements. D) hamburgers and hot dogs are inferior goods.

RBC theorists claim that adverse supply shocks can take forms other than rising raw materials prices. One such shock comes from government policy:

A) reductions in government expenditure. B) increases in tax rates. C) more rigorous environmental regulation. D) reductions in the money growth rate.