If nominal GDP is $600 billion and, on the average, each dollar is spent three times per year, then the amount of money demanded for transactions purposes will be:

Natalie can produce 6 shirts in a day, or cook three meals. Her opportunity cost of producing a shirt is 2 meals

Indicate whether the statement is true or false

Believers in the hypothesis of rational expectations argue that: a. expansionary fiscal and monetary policy can reduce unemployment without creating inflation. b. a trade-off exists between unemployment and inflation even in the long run

c. the Phillips curve is vertical even in the short run for expected changes in inflation. d. the Phillips curve is downward sloping even in the long run.