The economy is growing at its long-run potential growth rate of 3% with an inflation rate of 4% if a positive aggregate demand shock occurs and the fed responds by decreasing money growth, but fails to offset the aggregate den shock, then in the short run: a. the real growth rate will be 3%, and the inflation rate will be 4%. b. the real growth rate will be higher than 3% and the inflation rate will be lower than 4%. c. the real growth rate will be lower than 3%, and the inflation rate will be lower than 4%. d. the real growth rate will be higher than 3% and the inflation rate will be higher than 4%.

If the ceo of a large, diversified, firm were filling out a fitness report on a division manager (i. e., "grading" the manager), which of the following situations would be likely to cause the manager to receive a better grade? in all cases, assume that other things are held constant. a. the division's basic earning power ratio is above the average of other firms in its industry. b. the division's total assets turnover ratio is below the average for other firms in its industry. c. the division's debt ratio is above the average for other firms in the industry. d. the division's inventory turnover is 6, whereas the average for its competitors is 8.e. the division's dso (days' sales outstanding) is 40, whereas the average for its competitors is 30.