The primary goal of the European Central Bank is

________ flexible wages and prices imply that the short-run aggregate supply curve is ________.

If the consumption function is expressed as C = a + mpc × YD, then “mpc” represents

The problem faced by the lender that the borrower may take on additional risk after receiving the loan is called

An increase in government spending causes the equilibrium level of aggregate output to ________ at any given interest rate and shifts the ________ curve to the ________, everything else held constant.

The time it takes for the policy actually to have an impact on the economy is called

The aggregate supply curve shows the relationship between

A positive supply shock causes ________ to ________.

The existence of lags prevents the instantaneous adjustment of the economy to policies changing aggregate demand, thereby strengthening the case for

If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the monetary base is