An inside lag is the time period it takes for the stabilization policies to take effect after they have been implemented

Which of the following will most likely cause an increase (shift to the right) in both the long-run and short-run aggregate supply curves?

a. an increase in the national debt b. an increase in income tax rates c. a decrease in the economy's rate of investment and capital formation d. a technological improvement in robotics that substantially increases labor productivity

As interest rates rise, the quantity of money demanded

A. falls. B. rises. C. stays the same. D. does not react to interest rate changes.