If the real interest rate is 10.3% and the nominal interest rate is 12.6%, what is the inflation rate?

Assume the price of tomatoes increases. Which of the following causes would correspond to greater producer surplus?

A) an increase in supply B) an increase in costs C) a decrease in supply D) an increase in demand

The self-correcting tendency of the economy means that falling inflation eventually eliminates:

A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.