To offset the effect of households and firms deciding to hold more of their money in checking account deposits and less in currency, the Federal Reserve could

When inflation is not a surprise:

A) the Phillips curve is downward sloping. B) activist monetary policy has a real effect on the economy. C) the economy is not at full-employment output. D) it does not affect the unemployment rate. E) the economy is expanding.

The short-term cost function assumes that

A. fixed costs can't be changed. B. fixed costs can be easily changed. C. all variable costs are equal. D. variable costs can be fixed.