Given the production possibility curve shown below, the opportunity cost of listening to each additional album when moving from point B to point A is on average: 

The vital link between the real and monetary sectors of the economy is the:

A) price level. B) interest rate. C) balance of payments. D) budget deficit.

There is a temporary adverse supply shock. Given the effects of this shock, if the central bank chooses to return unemployment closer to its previous rate it would

a. raise the rate at which it increases the money supply. In the long run this will shift the short-run Phillips curve right. b. raise the rate at which it increases the money supply. In the long run this will shift the short-run Phillips curve left. c. reduce the rate at which it increases the money supply. In the long run this will shift the short-run Phillips curve right. d. reduce the rate at which it increases the money supply. In the long run this will shift the short-run Phillips curve left.