In the long run the real interest rate is determined by ________, and in the short-run the Federal Reserve can control the real interest rate by setting the nominal interest rate if inflation adjusts ________.

If the price of inputs rises and consumer expectations about future economic activity worsens:

a. Aggregate demand rises, but aggregate supply does not change. b. Aggregate demand falls, and aggregate supply rises. c. Aggregate demand and aggregate supply rise. d. Aggregate demand and aggregate supply fall. e. None of the above.

When trade is free, patterns of trade and trade flows result from

A. the collective decisions of a few importers and exporters, as well as millions of private households and firms. B. the collective decisions of a few importers and exporters, as well as the governments of the countries in which they reside. C. the independent decisions of thousands of importers and exporters, as well as the governments of the countries in which they reside. D. the independent decisions of thousands of importers and exporters, as well as millions of private households and firms.