Refer to the diagram relating to short-run and long-run aggregate supply. The:

The underground economy refers to

A) transactions in mineral and mining activity. B) cash payments made in lieu of credit cards. C) cash payments made in order to avoid documentation of taxable income. D) hoarding of dollar bills in high-inflation countries.

Which of the following does the long-run Phillips curve tell us?

a. That output can be below potential in the long run b. That the unemployment rate can take on any value in the long run c. That output can be maintained above potential in the long run d. That unemployment will return to the natural rate in the long run e. That the inflation rate cannot rise above 10 percent in the long run