In the early 1920s U.S. consumer prices fell, while Germany experienced hyperinflation. According to the ideas of shoeleather costs and menu costs, U.S. households (relative to German households) made _____ frequent trips to the bank and U.S. firms changed prices _____ frequently

If the Federal Reserve wants to reduce inflation from 4 percent to 3 percent permanently, how can that goal be achieved, and what impact will that have on employment in the short run and the long run? Support your answer with a graph of the Phillips

curve in the short run and the long run.

If a 5 percent increase in income leads to a 10 percent increase in quantity demanded for airline travel, then airline travel is

A) an inferior good. B) a necessity. C) a luxury. D) a substitute for another good.