If wages and prices adjust rapidly, we would expect expansionary monetary policy to be
A) more likely to affect the unemployment rate.
B) more likely to reduce the natural rate of unemployment.
C) less likely to affect the unemployment rate.
D) less likely to result in a vertical short-run Phillips curve.
C
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If mutual interdependence among firms is present, each profit-maximizing firm in the market
a. produces a product that must be identical to the products of its rivals. b. must consider the reactions of its rivals when it determines its price policy. c. faces a perfectly elastic demand curve for its product. d. faces a perfectly inelastic demand curve for its product.
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 ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C