An inflation forecast developed in a Keynesian framework is likely to focus on

Action taken by the Fed to reduce the money supply will tend, all other things unchanged,

A) to reduce investment. B) to increase investment. C) to have no effect on net exports. D) to increase real GDP and the price level.

Refer to Figure 11.1. Assume the economy is in equilibrium at 1 = 0. Other things equal, a decrease in the growth rate of productivity will result in a movement from point ________ to point ________

A) A; B B) B; A C) A; C D) A; D