When planned expenditure is drawn on a graph as a function of income, the slope of the line is:

The business cycle is measured by the

a. production of goods and services. b. number of people employed. c. the interest rate. d. Both a and b are correct.

In the short run, one reason why we do not define "full employment" as 0 percent unemployment is because

A. Of the direct relationship between unemployment and inflation. B. 0 percent unemployment is consistent with price stability. C. The closer the economy gets to capacity output, the greater the risk of inflation. D. Of the vertical aggregate supply curve.