Refer to the figure above. The MSB curve lies to the right of the demand curve because the production of Good Y involves ________

The rate of inflation over time records the absolute change in the average cost of purchasing a basket of goods and services

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

Which of the following is not correct?

a. In the short run, policymakers face a tradeoff between inflation and unemployment. b. Events that shift the long-run Phillips curve right shift the long-run aggregate supply curve left. c. Unemployment can be changed only by the use of government policy. d. The decrease in output associated with reducing inflation is less if the policy change is announced ahead of time and is credible.