According to the Taylor rule, if inflation in the last year was 6% and output was 2% below its full-employment level, the nominal Fed funds rate should be

When the selling price of a good goes up, what is the relationship to the quantity supplied?

a) the cost of production goes down b) The profit made on each item goes down c) It becomes practical to produce more goods d) There is no relationship between the two

Explain why the short-run aggregate supply curve is a relatively flat, horizontal line

What will be an ideal response?