Classical macroeconomists argue that the short-run Phillips curve ________ represent a usable trade-off for policymakers because ________

In addition to keeping interest rates too low for too long, the Fed also:

A. overestimated the importance of the housing sector for the whole economy. B. kept government spending too high for too long in the years leading up to the recession. C. ran too great of a budget surplus in the years leading up to the recession. D. underestimated the impact of a decline in the housing sector on the whole economy.

The figure above gives your budget line for magazine and CDs per month. Given that your income equals $60 per month, what is your real income in terms of CDs?

A) 3 CDs B) 5 CDs C) 6 CDs D) $60/month