The long-run aggregate supply curve is

Federal government expenditures, as a percentage of GDP,

A) rose from 1950 to 1991, fell from 1992 to 2001, and have risen from 2001 to the present. B) rose from 1950 to 1980, fell from 1981 to 2001, and have risen from 2001 to the present. C) have fallen since the early 1950s to the present. D) rose from 1950 to 2001 and then fell from 2001 to the present. E) have risen since the early 1950s to the present.

When x increases leading decrease in output, a better policy tool is

A) decrease in policy rate. B) increase in policy rate. C) increase in government spending. D) decrease in government spending.