In the ________ , savers and borrowers come together to determine the market rate of interest

Comment on the ability of a credible nominal anchor to allow policy makers to exploit a short-run trade-off between unemployment and inflation

What will be an ideal response?

Which of the following is true in the long run? a. The aggregate demand curve determines the level of potential output

b. The long-run aggregate supply curve is horizontal. c. The actual price level and the expected price level are equal. d. Cyclical unemployment is between 5 percent and 6 percent. e. The price level is determined entirely by the long-run aggregate supply curve.