1. The accelerationism model is an alternative interpretation of the

a. supply-side Laffer curve, which shows optimal tax rates

b. Phillips’ Curve model, which shows the unemployment/inflation tradeoff

c. Phillips’ Curve model, which emphasizes the relationship between the money supply, velocity, and inflation

d. aggregate demand & aggregate supply model , which shows that only in the Keynesian range can spending increase without inflation.

2. In the very short run, deflation occurs and real output rises. Which of the following could cause this?

A - increase in aggregate demand

B - reduction in aggregate supply

C - reduction in aggregate demand

D - increase in aggregate supply