Refer to Scenario 9.1. The socially optimal outcome occurs when Sheb places ________ sheep on the commons and Monty places ________ sheep on the commons

During early 2001, the Fed unexpectedly increased the money supply. The effect of this policy was a

A) downward shift of the short-run Phillips curve. B) rightward shift of the long-run Phillips curve. C) upward shift of the short-run Phillips curve. D) movement upward along the short-run Phillips curve. E) movement downward along the short-run Phillips curve.

If purchasing power parity holds between the U.S. and China:

A. the real exchange rate must be 1. B. the nominal exchange rate must be 1. C. the U.S. must no longer have a trade deficit. D. China must no longer have a trade deficit.