The IS curve illustrates which of the following relationships？
A. Direct relationship between aggregate income and the price level.
B. Inverse relationship between aggregate income and the price level.
C. Inverse relationship between aggregate income and the real interest rate.
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Core inflation is best described as an inflation rate:
A. For producers raw materials.
B. The central bank views as acceptable.
C. That excludes certain volatile goods prices.
The Fisher effect states that the nominal interest rate is equal to the real rate plus:
Actual inflation.
B. Average inflation.
C. Expected inflation.
If the money supply is increasing and velocity is decreasing:
A. Prices will decrease.
B. Real GDP will increase.
C. The impact on prices and real GDP is uncertain.
The unemployment rate is defined as the number of unemployed as a percentage of the:
A. Labor force.
B. Number of employed.
C. working-age population.
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