If a central bank decreases the money supply in response to an adverse supply shock, then which of the following quantities moves closer to its pre-shock value as a result?

An increase in production costs will shift the:

A) aggregate demand curve. B) short-run aggregate supply curve. C) long-run aggregate supply curve. D) none of the above.

On a PPF with two products, health care and housing, what would occur in a stagnant economy if health care output increased?

A. Housing would increase. B. Deflation would occur. C. Housing would decrease. D. The stagnation would end.