If policymakers are concerned that the economy is in danger of rising inflation because aggregate demand is increasing faster than aggregate supply, the appropriate fiscal policy response is to

Infant industry protection" refers to:

a. countries' use of protection (tariffs and quotas) to protect their domestic manufacturing activities. b. countries' use of protection to protect their export activities. c. countries' use of short-term protection to protect young industries while they mature. d. countries' use of short-term protection to protect their agricultural activities.

Refer to Figure 4-6. What is the value of consumer surplus after the imposition of the price floor?

A) $1,500 B) $2,700 C) $4,500 D) $5,700