Which of the following groups is associated with the policy recommendation that the money stock should grow only at the rate of growth in real GDP?

When the production of a good creates an external cost, one method of achieving the efficient allocation is to impose a tax such that

A) MC + tax = MSC. B) MC - tax = MSB. C) MB + tax = MSC. D) MB - tax = MSB.

Refer to Figure 12.2. Suppose the economy is initially above potential GDP, and the actual inflation rate is greater than the expected inflation rate

If the Fed wants to achieve the goal of price stability, this would be represented by a movement on the Phillips curve from A) point A to point B. B) point C to point B. C) point B to point A. D) point A to point B to point C.