The long-run Phillips curve applies when the economy is at full ...

[Zoey63294]

The long-run Phillips curve applies when the economy is at full employment, so the long-run Phillips curve is ________, which demonstrates that changes in the inflation rate ________ effect on unemployment.
 
  A) horizontal; have no
  B) an upward sloping straight line with a 45 degree slope; have an
  C) vertical; have no
  D) vertical; have an
  E) a downward sloping straight line with a 45 degree slope; have an

Question 2

In the short run, to decrease the interest rate, the Federal Reserve ________ the quantity of money by ________ government securities.
 
  A) decreases; buying
  B) increases; selling
  C) decreases; selling
  D) increases; buying
  E) None of the above answers is correct because in the short run, the Federal Reserve cannot change the interest rate.

[leahm14]

Answer to Question 1

C

Answer to Question 2

D

[Zoey63294]

TYSM

[gcook]

Excellent