To the extent that households are target savers who save to reach a specific goal, an increase in the interest rate ________ household saving and a decrease in the interest rate ________ household saving.

In the long run, the Phillips curve is a ________ at ________

A) horizontal line; 0% inflation B) vertical line; the natural rate of unemployment C) vertical line; the expected rate of inflation D) negatively sloped line; the intersection of aggregate demand and short-run aggregate supply

Demand and supply analysis is particularly important if

a. the success of your firm is closely linked to the profitability of your primary industry b. the success of your firm is independent of the profitability of your primary industry c. the success of your firm is unlikely d. demand and supply analysis is unimportant