Based on the figure below, the economy is initially at point A on the monetary policy reaction function (RF1) and the aggregate demand curve (AD1). The actual rate of inflation is ?' and the Federal Reserve's target inflation rate is ?*1. If the Federal Reserve lowers its target inflation rate to ?*2, then the Federal Reserve's monetary policy reaction function will ________ and the aggregate demand curve will ________.

In the Historical Perspective "The Corn Laws Controversy in 19th-Century England," the implication of David Ricardo's theory of differential rent is that

a. high rents were the main cause of high food prices in 19th-century England b. price is rent determining; rent is not price determining c. international trade ought to be restricted since it is instrumental in protecting landowners' rents d. land rents are part of the cost of food production e. differential land rents do not exist

Deflation is a:

A. steady, unchanging aggregate price level. B. sustained fall in the aggregate price level. C. steady fall in the exchange rate. D. sustained increase in the aggregate price level.