Most markets in the U.S. economy are perfectly competitive

If wages and prices adjust slowly, we would expect expansionary monetary policy to be

A) more likely to result in a vertical short-run Phillips curve. B) less likely to reduce the natural unemployment rate. C) more likely to reduce inflation. D) more likely to affect the unemployment rate.

The Consumer Price Index (CPI) is a measure of the:

a. cost of a market basket of consumer goods and services relative to its cost in a base year. b. change in the average price of a market basket of necessary goods and services c. cost of a market basket of consumer goods relative to the previous year. d. change in the average price of all intermediate goods and services. e. average price of all final goods and services relative to the average price in the previous year.