Select the letter of the diagram in Figure 28.1 that best represents the effect of each event on the United States wheat market, ceteris paribus: The federal government decides to no longer purchase wheat from farmers. (See Figure 29.4.)

If the expected rate of inflation rose at the same time the natural rate of unemployment rose, the short-run Phillips curve

A) would shift down. B) would shift up. C) would not move. D) might shift up or down or not move, depending on which effect was larger.

An economy's production possibilities frontier is fixed in the long run

a. True b. False