Competitive firms decide how much output to sell by producing output until the price of the good equals

Real (adjusted for inflation) federal spending per person in the United States

a. has increased by approximately 10 percent per decade during the last 225 years. b. increased more rapidly during the nineteenth century than during the twentieth century. c. in 2012 was approximately 80 times the level of 1916. d. increased rapidly during the first half of the twentieth century but has changed very little since 1950.

If people correctly anticipate that inflation will fall by 1%, then

a. the short-run Phillips curve shifts right and unemployment is unchanged. b. the short-run Phillips curve shifts right and unemployment rises. c. the short-run Phillips curve shifts left and unemployment is unchanged. d. the short-run Phillips curve would shift left and unemployment falls.