Hi, please provide explainations, thank you.

The amount of output that an economy can produce in the short run

a. is exactly equal to the economy's production capacity.

b. can drop below the economy's production capacity, but cannot rise above that level.

c. can rise above the economy's production capacity, but cannot drop below that level.

d. can deviate from its production capacity depending on the intensity of resource use.

If prices are fully flexible in an economy in the short run, GDP of that economy would always:

a. deviate from the economy's production capacity.

b. be equal to the economy's production capacity.

c. be above the economy's production capacity.

d. be below the economy's production capacity.

Country A's economy suffered major aggregate supply and demand shocks due to the COVID-19 pandemic in 2020. The demand shock was much more severe than the supply shock in the sense that in the absence of policy intervention, the short-run equilibrium real output determined by the IS-LM curves would have declined much more than the shrinkage in production capacity. If Country A government and it's central bank had not responded to the situation with their expansionary fiscal and monetary policies, by the end of 2020:

a. both inflation and GDP would have risen.

b. both inflation and GDP would have dropped.

c. inflation would have declined, but GDP would have risen.

d. inflation would have risen, but GDP would have declined.