According to the quantity theory of money, the inflation rate equals
A) real output minus the money supply.
B) the growth rate of the money supply minus the growth rate of real output.
C) the growth rate of real output minus the growth rate of the money supply.
D) the money supply minus real output.
B
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The curve showing the short-run relationship between the unemployment rate and the inflation rate is called
A) the Phillips curve. B) the monetary policy curve. C) the unemployment curve. D) the Sargent curve.
The explanation for the law of demand begins with
a. a small number of wants satisfied by scarce resources b. finite wants satisfied by infinite resources c. unlimited wants confronting scarce resources d. unlimited wants matching up with unlimited resources e. prices acting as signals to existing and potential suppliers