In the short run, a permanent increase in the domestic money supply causes Group of answer choices a greater upward shift in the AA curve than that caused by an equal, but transitory, increase. a smaller upward shift in the AA curve than that caused by an equal, but transitory, increase. a smaller downward shift in the AA curve than that caused by an equal, but transitory, increase. a greater downward shift in the AA curve than that caused by an equal, but transitory, increase. a greater upward shift in the DD curve than that caused by an equal, but transitory, increase.

David consumes two things: gasoline (g) and bread (b). david's utility function is u(g, b) = 10g^0.25 b^0.75. use the lagrange technique to solve for david's optimal choices of gasoline and bread as a function of the price of gasoline, p_g, the price of bread, p_b, and his income m. with recent decrease in the price of gasoline (maybe due to external shock such as shale gas production) does david increase his consumption of gasoline? for david, how does partial differential g/partial differential p_g depend on his income m? that is, how does david's change in gasoline consumption due to an increase in the price of gasoline depend on his income level? to answer these questions, find the cross-partial derivative, |partial differential^2 g/partial differential m partial differential p_g.