2)The aggregate supply function is derived from which of the following concepts?

(A) The income approach used in national accounts to measure GDP

(B) The total product approach used in national accounts to measure GDP

(C) The expenditure approach used in national accounts to measure GDP

(D) None of the answers is correct

3)Economists believe that the economy will adjust and eliminate any short run output gaps,

and yet we often observe the government and central bank of different countries actively

intervene in their economies. Why are policy interventions sometimes necessary?

(A) It is harder for the economy to lower wages in response to recessions due to labour

contracts

(B) It may create significant economic hardship, such as high inflation or high unemployment, in the economy

(C) It may take a very long time for the economy to self-adjust

(D) All of the answers are correct