A downward shift in the Fed's policy reaction function is a(n) ________ of monetary policy, and the aggregate demand curve ________.

The natural rate of unemployment is higher in Europe than in the U.S. due to ________

A) the greater relative strength of American unions B) the greater relative generosity of U.S. unemployment benefits C) the greater severity of the business cycle in Europe relative to the U.S. D) stricter European work rules

The aggregate supply curve is the relationship between the price level and the quantity of real GDP purchased

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