Which of the following indicates whether the good in question is normal or inferior?

According to the misperceptions theory, when the aggregate price level is higher than expected,

A) the aggregate quantity of output supplied rises above the full-employment level. B) the aggregate quantity of output supplied falls below the full-employment level. C) the aggregate quantity of output demanded falls below the full-employment level. D) the aggregate quantity of output demanded rises above the full-employment level.

A speculator becomes the floating-rate payer in an interest-rate swap. She hopes that

A) long rates rise. B) long rates fall. C) short rates rise. D) short rates fall.