If Katherine claims that when it comes to buying shoes, "price is no object," her demand curve for shoes is likely to be

When actual real GDP is below natural real GDP, we say that

A) the output gap is positive. B) the output gap is negative. C) the output gap has been eliminated. D) the output gap cannot be calculated.

Refer to Figure 12.5. If exchange rates are floating, the Fed decreasing its target inflation rate would best be represented by a movement from ________ in panel (a) and a corresponding movement from ________ in panel (b)

A) point A to point B; point X to point Y B) point C to point A; point X to point Y C) point D to point C; point Y to point X D) point B to point D; point Y to point X