If the Fed increases the real interest rate as a response to a decrease in the inflation rate, the ________, which results in a ________
A) MP curve shifts up; movement down the AD curve
B) MP curve shifts up; movement up the AD curve
C) IS curve shifts up; movement down the AD curve
D) IS curve shifts up; movement up the AD curve
B
Economics
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If the economy is at full employment
A) the entire population is employed. B) the entire labor force is employed. C) the only unemployment is frictional unemployment plus discouraged workers. D) real GDP equals potential GDP.
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Opportunity cost exists because of
A) poverty. B) scarcity. C) greed. D) self-interest.
Economics