In the above figure, which of the following points indicates the efficient use of resources?

Which of the following is the factor that leads to business cycles in the new classical business cycle theory?

A. a change in the growth rate of productivity
B. a change by the Fed in the growth rate of the quantity of money 
C. a change in business confidence 
D. an unexpected change in aggregate demand

One of the distinguishing differences between periods of low inflation and periods of high inflation is that

A. low inflation periods are short lived. B. high inflation periods are short lived. C. high inflation periods are long lived. D. low inflation leads to high inflation.