When the government uses taxes and spending to affect national economy, it is engaging in:

If the public believes the commitment to a nominal anchor to be credible, the effect of a positive aggregate demand shock is for ________

A) short-run aggregate supply to shift up B) short-run aggregate supply to be unaffected C) short-run aggregate supply to shift down D) inflation, but not economic activity, to increase

For each interest rate, the LM curve illustrates the level of output where

A) the goods market is in equilibrium. B) inventory investment equals zero. C) money supply equals money demand. D) all of the above E) none of the above