Suppose that nominal GDP in 2016 was less than real GDP in 2016. Given this information, we know for certain that

For movements along the long-run aggregate supply curve

A) potential GDP is dependent on the price level. B) the prices of goods and services change while the prices of productive resources hold steady. C) the price level and the money wage rate change by the same percentage. D) All of the above are correct.

Should the government wish to lower the price of gasoline to the consumer, one approach might be

A) to raise the gasoline excise tax. B) to reduce the gasoline excise tax. C) to take action to shift the supply curve of gasoline to the left. D) to lower taxes on automobiles.