If the Federal Reserve raises its target inflation rate, the monetary policy reaction function ________ and the aggregate demand curve ________.

Suppose Cournot duopolists firms face the same market demand curve, but have differing costs. At the Nash-Cournot equilibrium, the firm with the higher cost will

A) have a lower price for its product than its competitor. B) have a smaller profit than its competitor. C) have a higher price for its product than its competitor. D) have a higher profit than its competitor.

When we say that economic fluctuations are "irregular and unpredictable," we mean that

a. the relationship between output and unemployment is erratic and difficult to characterize. b. when one macroeconomic variable that measures income or spending is falling, other macroeconomic variables that measure income or spending are likely to be rising. c. recessions do not occur at regular intervals. d. All of the above are correct.