In the table above, if the cost of capital is $20 per day and an hour of labor is $15 per day, which method is economically efficient?

If no fiscal policy changes are made, suppose the current aggregate demand curve will increase horizontally (shift rightward) by $1,000 billion and cause inflation. If the marginal propensity to consume is 0.90, federal policymakers could follow Keynesian economics and restrain inflation by decreasing:

a. government spending by $100 billion. b. taxes by $100 billion. c. taxes by $1,000 billion. d. government spending by $1,000 billion.

Supply-restricting policies are intended to shift the

A) supply curve to the left. B) supply curve to the right. C) demand curve to the left. D) demand curve to the right. E) b and d