When analyzing the economy as a whole, ________ substitution from one market to another is impossible.

In monopolistic competition, there are

A) many firms making a differentiated product. B) a few firms making a differentiated product. C) many firms making an identical product. D) a few firms making an identical product.

Suppose the unemployment rate in 2001 was 4.7, lower than the 5.4 percent unemployment rate that policymakers think is consistent with price level stability. Accepting the dictates of the Phillips curve, they would probably forecast for 2002

a. a higher rate of inflation b. a lower rate of inflation c. a higher rate of GDP growth d. a recession e. an economic stabilization at 4.7 percent unemployment