Q9. Of the following, which is an example of a type of business investment expenditure?

a. Purchase of a factory

b. Purchase of a car by the Khan family

c. Purchase of a government bond

Q10. The ________ perspective tends to view inflation as a cost that offers no offsetting gains in terms of lower unemployment.

a. Keynesian

b. neoclassical

c. monetarist

Q11. Why does the AD curve shifting left follow Keynes' law when in the intermediate zone of the AD-AS graph?

a. As AD shifts left, GDP decreases.

b. As AD shifts left to a steeper part of the AS curve, GDP gets closer to potential GDP.

c. As AD shifts left, the AS curve increases and output increases again.