When prices are used as a rationing device, goods that are relatively more scarce than they used to be will have

After a positive demand shock, what are the expected long-run adjustments?

a. Wages fall, price level falls, and output falls back to potential. b. Wages rise, price level rises, and output falls back to potential. c. Wages fall, price level rises, and output rises back to potential. d. Wages rise, price level falls, and output falls back to potential. e. Wages rise, price level rises, and output rises.

Balancing the federal budget over the business cycle requires

A. deficits incurred during economic slumps that are offset by surpluses during economic booms. B. raising taxes and cutting spending during stagflation. C. rapid increases in the national debt during national emergencies. D. matching deficits and surpluses each time Earth orbits the sun. E. that the national debt grow only as fast as GDP grows.