The estimated regression equation is Y = 10 + 2.5X, if X =0 than the predicted value of Y is equal to:

Fiscal policy involves ________

A) taxes and government spending B) setting interest rates C) controlling the amount of money in the economy D) all of the above E) none of the above

If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:

A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.