Refer to Figure 3-1. A decrease in the price of a complementary good would be represented by a movement from

According to the equation of exchange, how can national income grow even though the amount of money does not?

A) price level increases B) real GDP decrease C) velocity increases D) velocity decreases

In the short run, as output rises above potential ________

A) inflation will fall from its current level which explains the upward-sloping nature of the Phillips curve B) inflation will rise from its current level which explains the upward-sloping nature of the aggregate supply curve C) unemployment will rise above the natural rate which explains the upward-sloping nature of both the Phillips curve and the AS curve D) all of the above E) none of the above