In the graph showing aggregate demand and aggregate supply after a negative supply shock, we can see that high energy prices in the late 1970s caused ______.

Starting from a position of macroeconomic equilibrium at the full-employment level of real GDP, in the short run, an unanticipated decrease in the money supply will: a. raise real interest rates, lower the price level, and reduce real GDP

b. raise real interest rates, lower the price level, and leave real GDP unchanged. c. raise nominal interest rates, lower the price level, and leave real GDP unchanged. d. lower real interest rates, raise the price level, and increase real GDP.

The practice of potential buyers offering lower prices for a product of uncertain quality than they would for a product of certain quality is known as: a. the lemon problem. b. moral hazard

c. external costs. d. None of the above.