"Effective demand" represents which of the following?

The income per capita of two neighboring countries for a particular year were equal. However, Country 1 had a higher income per worker than Country 2. Which of the following is likely to be true?

A) The number of people unemployed is lower in Country 1 than in Country 2. B) The number of children aged below 15 is higher in Country 2 than in Country 1. C) The number of retired people is higher in Country 2 than in Country 1. D) The number of people employed is higher in Country 2 than in Country 1.

In the long run, persistent inflation in the United States is caused by

A) leftward shifts in both the long-run aggregate supply curve and in the aggregate demand curve. B) rightward shifts in the long-run aggregate supply curve and the leftward shift of the aggregate demand curve. C) a faster rightward shift of the aggregate demand curve than the rightward shift of the long-run aggregate supply curve. D) leftward shifts in the aggregate demand curve while the position of the long-run supply curve is unchanged.