Which of the following causes the production possibilities curve to shift to the right?

In the later part of the twentieth century, the price of crude oil began to increase after decades of relatively steady prices, which of the following could explain this phenomenon?

A) Worldwide reserves have been increasing. B) Worldwide demand has been increasing. C) Global warming D) Extraction technology has been degrading.

According to a Classical, sound finance perspective on macroeconomics, if an economy is on an inflationary path, the government should run:

A. a budget deficit and increase spending, which will reduce output. B. neither a surplus nor a deficit since changes in deficit spending do not affect output. C. a budget surplus and decrease spending, which will reduce output. D. neither a surplus nor a deficit since changes in spending affect output.