Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 

In the short run, when the Fed increases the nominal interest rate, the real interest rate

A) permanently falls. B) does not change. C) permanently rises. D) temporarily rises. E) temporarily falls.

The American Revolution, the Civil War (1861–65) and World War I (1914–18)

(a) diverted U.S. resources from peace-time, private uses and toward war-related uses. (b) encouraged the efficient allocation of resources. (c) increased long-term investment opportunities. (d) resulted in the excessive contraction of money to finance war efforts.