If inflation is a threat, the Fed is likely to engage in a contractionary monetary policy.

Moving along the short-run aggregate supply curve, ________

A) the real wage rate is constant B) real GDP equals potential GDP C) the money wage rate, the prices of other resources, and potential GDP remain constant D) real GDP equals nominal GDP

If all government budgets are balanced, and S is greater than I, then

A) the net international investment position must be positive. B) the financial account must be positive. C) the financial account must be negative. D) the net international investment position must be negative. E) Both A and B.