In the U.S., studies have shown that as real incomes have risen, per capita demand for food has been increasing by a much lower percentage

If a central bank were required to target inflation at zero, then when there was an unanticipated increase in aggregate supply the central bank

a. would have to increase the money supply. This would move unemployment closer to the natural rate. b. would have to increase the money supply. This would move unemployment further from the natural rate. c. would have to decrease the money supply. This would move unemployment closer to the natural rate. d. would have to decrease the money supply. This would move unemployment further from the natural rate.

Refer to the table. The level of productivity in the economy is:

Answer the question on the basis of the following information about the relationship between input quantities and real domestic output in a hypothetical economy:

A.  2.
B.  .5.
C.  4.
D.  200.