According the Lucas' misperception model, when prices unexpectedly rise, suppliers infer that their relative prices have _____, which induces them to _____ output

The federal funds rate is set directly by the Fed.

a. true b. false

In absolute terms and relative to other countries, what happened to U.S. growth rates in productivity as measured by output per paid hour in the late 1960s and 1970s?

(a) They increased. (b) They stayed the same. (c) They fell. (d) They fell early on and then increased past their previous levels.