A period of stagflation is part of the normal aftermath of a period of excessive aggregate demand.
Answer the following statement true (T) or false (F)
True
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A decrease in interest rates by the Fed based on a given and unchanged policy reaction function represents a ________ the aggregate demand curve, and lower interest rates resulting from a downward shift in the Fed's policy reaction function represents a ________ the aggregate demand curve.
A. movement down; shift right of B. shift left of; shift right of C. movement up; movement down D. shift left of; movement up
In modern economies
A) some prices are very flexible while others are not. B) no prices are very flexible. C) all prices are very flexible. D) prices become less flexible as they increase.
Which of the following shifts the supply of loanable funds curve?
A) change in investment demand B) change in "animal spirits" C) change in the real interest rate D) change in disposable income E) change in expected profit
The parameter A re-scales the production function 
-- allowing us to transform a decreasing returns to scale production function to an increasing returns to scale production function.
Answer the following statement true (T) or false (F)