An adverse supply shock that is permanent shifts which curve in addition to the curves shifted by one that is temporary?

If the price level rose in three consecutive years from 100 to 120 to 140, then the annual inflation rate over those years would

A) decrease. B) remain the same. C) equal 20%. D) increase.

The tax multiplier

A) is negative. B) is a measure of how much taxes will fall when income is falling. C) is larger in absolute value as compared to the government spending multiplier. D) is always less than one.