The term "stagflation" is used to define an economic situation where there are adverse supply shocks which cause a fall in output but with increasing price level

Refer to Figure 17-1. What should the Federal Reserve do if it wants to move from point A to point B in the short-run Phillips curve depicted in the figure above?

A) lower taxes B) buy treasury bills C) lower the discount rate D) increase the money supply E) sell treasury bills

Over the past 50 years, there has been an increase in spending on public education without a noticeable improvement in student performance. One explanation given by economists on why student performance has not improved is that

A) not enough funds have been spent on public education. B) schools are providing high-priced services that are not valued by parents. C) the quantity of educational services has not increased beyond the pre-subsidy equilibrium. D) too much competition for educational services.