Points that lie inside (or below) the PPF are

Patents create monopolies by restricting

A) demand. B) prices. C) entry. D) profit.

Assume that a central bank with a history of inflation announces that it is going to reduce money growth and inflation. According to the rational expectations model, the public will

a. immediately reduce their expected price level and inflation. b. reduce their expected price level if this announcement is credible. c. reduce their money and real wages if this announcement is credible. d. immediately be open to reducing their money wage. e. both b and c.