"Lower marginal tax rates encourage people to work, save, and invest, resulting in more output and a larger tax base." This statement most closely reflects which of the following schools of economic thought?

Everything else held constant, a decrease in net exports ________ aggregate ________

A) increases; demand B) decreases; demand C) decreases; supply D) increases; supply

When a price shock occurs, the inflation rate is affected ________

A) only in the period of the price shock B) only in the period after the price shock C) only if the price shock causes a change in output D) only if the price shock persists for more than one period E) none of the above