From the late 1860s until 1907 the U.S. averaged a four percent or more increase in the real value of the goods and services produced

Which of the following statements is correct?

A. If demand increases and supply decreases, equilibrium price will fall. B. If supply increases and demand decreases, equilibrium price will fall. C. If demand decreases and supply increases, equilibrium price will rise. D. If supply declines and demand remains constant, equilibrium price will fall.

In the graph showing the Phillips curve after a positive supply shock, we can see that a positive supply shock would cause ______.

a. a leftward shift in the Phillips curve
b. a rightward shift in the Phillips curve
c. a movement to a point further up the Phillips curve
d. a movement to a point further down the Phillips curve