When the Fed buys securities from the public, banks' reserves ________ and the quantity of money ________

Suppose you came across the following headline in a story of a daily newspaper: "Automobile prices are so high right now that there must be a shortage. As a consequence not everyone who needs an automobile will be able to buy one"

Is this statement necessarily correct?

In the 1960s and early 70s, economists believed that the Phillips curve indicated: a. a menu of macroeconomic choices available to policy makers

b. that higher levels of employment could be achieved with lower inflation. c. that higher inflation was the price for more unemployment. d. all of the above.