A one-year discount bond has a face value of $1000 and price of $880. What is the yield to maturity on the bond? Report using percentages with two decimal places

The short-run tradeoff between the unemployment rate and the inflation rate shown by the Phillips curve is represented in the AS-AD model by

A) rightward shifts of the aggregate supply curve. B) the downward-sloping aggregate demand curve. C) the upward-sloping aggregate supply curve. D) the vertical potential GDP line. E) leftward shifts of the aggregate supply curve.

In 1981 Fed policy created a severe recession because the Fed

A) publicly announced an inflation increase program. B) undertook an unexpected increase in the inflation rate. C) undertook an unexpected reduction in the inflation rate. D) publicly announced an inflation reduction program. E) increased aggregate supply to reduce the inflation rate.