When investors buy more capital goods because the interest rates have fallen, the aggregate demand curve

Refer to Figure 2-13. Which two arrows in the diagram depict the following transaction: Lizzie Haxem hires "The Paint Pros," a professional painting company, to paint her home

A) J and G B) K and M C) K and G D) J and M

When output is below potential and the policy rate has hit the floor of zero, if policymakers do nothing, output will ________ and inflation will ________

A) rise; fall B) fall; fall C) fall; rise D) rise; rise