Consider the two graphs above. Suppose that final goods are assembled only when ordered and to satisfy the precise preferences of each consumer. This would ________ the desired level of inventories, as depicted in graph ________

Refer to Figure 26-15. In the figure above, suppose the economy in Year 1 is at point A and is expected in Year 2 to be at point B. Which of the following policies could the Federal Reserve use to move the economy to point C?

A) sell Treasury bills B) decrease the required-reserve ratio C) buy Treasury bills D) decrease income taxes

Neo-Keynesians believe that the inverse relationship between rates of unemployment and rates of inflation is causal

Indicate whether the statement is true or false