Today John says, "I will start working out tomorrow." Yet as tomorrow arrives, he doesn't. This is an example of

When the expected inflation rate changes, what happens to the short-run Phillips curve? To the long-run Phillips curve?

What will be an ideal response?

Which of the following does the federal reserve use most often to combat a recession?

a) selling securities b) buying securities c) reducing reserve requirement d) increasing discount rate e) increasing federal funds rate