A decrease in the demand for the output that an input produces will cause the input's:
a. supply curve to shift to the right.
b. supply curve to shift to the left

Refer to the table above. If the price level is 120, then the aggregate quantity demanded is ________ than the aggregate quantity supplied and the price level ________

A) greater; rises B) greater; falls C) less; rises D) less; falls E) less; might fall, rise or not change depending on whether real GDP is more than, less than, or equal to potential GDP.

Which of the following statements about inflation targeting is true?

A) Inflation targeting would not reduce the flexibility of monetary policy to address other policy goals. B) Inflation targeting by the central banks in other countries has not typically lowered inflation. C) Inflation targeting would make it easier for households and firms to form accurate expectations of future inflation, improving their planning and the efficiency of the economy. D) Inflation targeting would not allow the central bank the flexibility to take action against a severe recession.