To understand how poverty, inequality, and discrimination affect the economy, ________ analysis is used, and ________ analysis is used to address whether the government should try to reduce inequality in the name of social justice.

A reduction in world oil supplies is likely to cause

A) an increase in aggregate demand and a decrease in the equilibrium price level. B) a decrease in equilibrium price level and an increase in real Gross Domestic Product (GDP). C) an increase in equilibrium price level and an increase in real Gross Domestic Product (GDP). D) a reduction in aggregate supply, a rise in the equilibrium price level, and a fall in real Gross Domestic Product (GDP).

According to the aggregate supply drawn under the monetarist view, which of the following would lead to a higher price level?

A. The purchase of bonds in the open market by the Fed. B. An increase in the discount rate. C. An increase in the reserve requirement. D. A decrease in the money multiplier.