From an initial long-run macroeconomic equilibrium, if the Federal Reserve anticipated that next year aggregate demand would grow significantly slower than long-run aggregate supply, then the Federal Reserve would most likely

Suppose that last year you borrowed $100 at 5 percent interest to purchase a $100 pair of Nike cross-training shoes. This year you repaid the bank with interest. If the inflation rate was 10 percent last year (so the price of shoes rose to $110), your purchase of the shoes would

a. make you an inflation winner because you gained $5 by borrowing rather than waiting the year to buy the shoes b. make you an inflation loser because you paid $5 more than you should have for the shoes c. not be affected at all by the inflation rate because the shoes were already purchased d. be valued at $100 e. be valued at $110 multiplied by the inflation rate

Suppose that there is an improvement in technology in the market for Samsung phones. Which of the following is TRUE?

A) Supply will increase and the market clearing price will fall. B) Supply will increase and the market clearing price will rise. C) Demand will increase and the market clearing price will rise. D) Demand will increase and the market clearing price will fall.