Based on the figure above, short-run equilibrium occurs at the price level of

In a production possibilities frontier diagram, the attainable production points are shown as

A) the points inside and the points on the production possibilities frontier. B) only the points inside the production possibilities frontier. C) any of the production points. D) only the points beyond the production possibilities frontier. E) only the points on the production possibilities frontier.

When the Fed worries about inflation, it ________ the federal funds rate and, in the short run, ________ the real interest rate

A) raises; raises B) raises; lowers C) lowers; lowers D) does not change; the Fed raises E) lowers; raises