Consider the Following Statement: "President Nixon Expressed Satisfaction with Last

question 138

Multiple Choice

Consider the following statement: "President Nixon expressed satisfaction with last year's economic performance. He said that with inflation and unemployment heading down, the nation 'is on the right course'. " Which of the following could have caused this phenomenon?

• A) Economic agents revising their expectations about the price level resulting in the short-run aggregate supply curve shifting to the left.
• B) Expansionary fiscal and monetary policies that shifted the aggregate demand curve to the right.
• C) Increase in money supply which lowered interest rates and shifted the short-run aggregate supply curve to the right.
• D) Expansionary fiscal and monetary policies that shifted the long-run aggregate supply curve to the right.