6. Consider two countries. In Country A, 85 percent of firms can flexibly adjust their prices In the short run. In Country B, 40 percent of firms can flexibly adjust their prices in the short run. Both countries have the same long run aggregate supply curve and the same aggregate demand curve (Y = ). Suppose that both countries what to "run the economy hot" for a short period, so the central bank increases the money supply by 4% in both countries. Which country experiences more inflation in the long run? O A. Country A O B. Country B O C. Both are impacted equally 7. Suppose the government is interested in keeping both output and prices stable. Suppose there is a credit scare that causes demand for real money balances to rise. Select all of the following policies tat could achieve the government's goal: A. Increasing M B. Increasing T O C. Increasing G O D. Decreasing M O E. Decreasing T O F. Decreasing G and cares