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

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.