24) When the policy rate hits its zero lower bound and inflation keeps falling, this portion of the aggregate demand curve is

A) downward sloping.

B) upward sloping.

C) flat.

D) undetermined.

25) When output is below potential and the policy rate has hit the floor of zero, if policymakers do nothing, output will ________ and inflation will ________.

A) rise; fall

B) fall; fall

C) fall; rise

D) rise; rise