In the long run, the level of output depends on the price level.

The long-run Phillips curve shows the relationship between ________ and ________ when the economy is at full employment

A) the inflation rate; the nominal interest rate B) the unemployment rate; real GDP C) potential GDP; the natural unemployment rate D) the inflation rate; the unemployment rate E) the natural inflation rate; the unemployment rate

The practice of buying a foreign currency with one currency then reselling it to buy yet another currency

a. creates disequilibrium in the foreign exchange market b. is illegal in the U.S. c. is arbitrage d. is impossible because the foreign exchange market creates general equilibrium among exchange rates e. leads to mutually inconsistent exchange rates