A common explanation for the behavior of the short-run U.S. Phillips curve in 2009 and 2010 is that, over the previous 20 or so years, the Federal Reserve had
a. established a lot of credibility in its commitment to keep inflation at about 2 percent.
b. established a lot of credibility in its commitment to keep inflation at about 5 percent.
c. failed to establish significant credibility in its announced intent to keep inflation at about 2 percent.
d. failed to establish significant credibility in its announced intent to keep inflation at about 5 percent.
a
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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
If the price of orange juice rises 10%, and as a result the quantity demanded falls by 8%, the price elasticity of demand for orange juice is
A) -1.25. B) inelastic. C) Both A and B above. D) Neither A nor B above.
If expected inflation increases, the short-run Phillips curve will shift to the left so that inflation will be higher at any given unemployment rate
a. True b. False Indicate whether the statement is true or false
The Federal Open Market Committee makes decisions about ________ policy.
A. banking B. deposit insurance C. monetary D. fiscal