In imperfect competition, competition may take place in more levels than in perfect competition.

Inflation-targeting means that the central bank is legally required to focus only on keeping inflation high

a. True b. False Indicate whether the statement is true or false

According to the short-run Phillips curve, if the central bank increases the money supply, then

a. inflation and unemployment will both fall. b. inflation and unemployment will both rise. c. inflation will fall and unemployment will rise. d. inflation will rise and unemployment will fall.