If the Fed sells bonds, the short run impact of this policy will tend to include:
a. an increase in the inflation rate.
b. a reduction in unemployment

The circular flow of income assumes that

A) the national income accounting approach is not an adequate way to measure the economy's performance. B) profit is not a cost of production. C) goods and services flow in one direction and money payments flow in the other. D) total income is the sum of the value of intermediate goods and final goods and services.

Using a production possibilities curve, economic growth is represented by

A) an inward shift of the curve. B) an outward shift in the curve. C) a movement along the curve. D) a pivot of the curve.