The price index was 128 in 2013, and the inflation rate was 24 percent between 2012 and 2013 . The price index in 2012 was

When the Fed purchases government bonds it _____ reserves and ____ the money supply.

A) decreases; increases B) increases; decreases C) decreases; decreases D) increases; increases

We can represent the entry of new firms into a monopolistically competitive market by shifting the existing firms':

a. demand curves downward. b. demand curves upward. c. demand curves more inelastic. d. cost curves upward. e. cost curves downward.