Countries that are unable to produce goods as efficiently as other countries will never be able to trade

In September of 2007, the Federal Reserve Board Open Market Committee voted to lower interest rates for the first time that year. Explain how lower interest rates affect the aggregate demand curve

What will be an ideal response?

If wages and prices adjust slowly, we would expect expansionary monetary policy to be

A) more likely to result in a vertical short-run Phillips curve. B) less likely to reduce the natural unemployment rate. C) more likely to reduce inflation. D) more likely to affect the unemployment rate.