The bond supply and demand framework is easier to use when analyzing the effects of changes in ________, while the liquidity preference framework provides a simpler analysis of the effects from changes in income,
the price level, and the supply of ________.
A) expected inflation; bonds
B) expected inflation; money
C) government budget deficits; bonds
D) government budget deficits; money
B
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When economists say that there is a time lag in the effect of monetary policy, what do they mean?
a. That it takes time to observe the effects of fiscal policy on the economy b. That the Fed takes awhile to figure out what it wants to do c. That the Congress takes awhile to figure out what it wants to do d. That it takes time to observe the effects of monetary policy on the economy e. That the public needs time to decide how to respond to monetary policy changes
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward