Refer to Figure 6-1. A perfectly elastic demand curve is shown in

When consumption spending is greater than disposable income, we know with certainty that we have

A) dissaving. B) negative net investment. C) excess thrift. D) positive savings.

Refer to Figure 17-2. Suppose the economy is at point A. The Fed uses expansionary monetary policy to lower the unemployment rate permanently below the level associated with A. Which of the following will occur?

A) Inflation will accelerate in the long run. B) Unemployment will accelerate in the long run. C) Inflationary expectations will decline. D) Unemployment will rise above the natural rate.