Assume weak growth in aggregate demand keeps the economy below potential GDP, so unemployment rises but inflation falls. This explains the ________ slope of the short-run Phillips curve

If short-term government bond rates were indexed

A) such bonds would be a poor hedge against inflation. B) banks and saving and loan institutions would likely lose deposits. C) the government would gain from the implied inflation tax. D) the government would gain from the implied inflation subsidy.

According to ________, people are often risk averse when it comes to gains and risk preferring when it comes to losses

A) prospect theory B) the reflection effect C) the certainty effect D) the framing effect