According to John Taylor (for whom the Taylor rule is named), during the period 2002-early 2006 actual Fed policy was "too_________" , which he believes led to both interest rates being "too ________" and rising housing prices in the United States

Moving along the short-run Phillips curve, as the unemployment rate increases, the inflation rate

A) initially increases and then decreases. B) remains unchanged. C) increases. D) decreases. E) initially decreases and then increases.

Which of the following about inflation is true?

a. High rates of inflation are usually associated with wide year-to-year changes in inflation. b. High rates of inflation are usually associated only with very large countries such as the United States. c. High rates of inflation are usually associated only with smaller countries such as Costa Rica. d. High rates of inflation will generally improve the economic efficiency of an economy.