Refer to the information provided in Figure 20.2 below to answer the question(s) that follow. Figure 20.2Refer to Figure 20.2. The opportunity cost of 1 ________ is 4 ________ in the United States and 1.5 ________ in England.

A central bank that does NOT follow the Taylor principle will fail to raise nominal interest rates by more than the increase in expected inflation

Therefore, higher inflation will lead to a ________ in real interest rates, resulting in ________-sloping monetary policy curves. A) decline; downward B) rise; downward C) rise; upward D) decline; upward

Regardless of quantity in long-run equilibrium, the industry price cannot exceed the

a. long-run average cost of supplying that quantity. b. total variable cost of supplying that quantity. c. long-run total cost of supplying that quantity. d. minimum long-run marginal cost of supplying that quantity.