Government policies that are used to affect aggregate expenditure, with the objective of eliminating output gaps, are called ________ policies.

Refer to the market for loanable funds, as shown in the above graph. A decline in the interest rate is likely to:

A. Lower capital investment B. Increase the quantity of loanable funds demanded C. Come about when there is a shortage of loanable funds D. Result from an increase in the desire of firms to borrow funds

Suppose the supply and demand tables shown reflect the supply and demand for milk per week. What is the equilibrium price and quantity of milk?Price(per gallon)Quantity demanded (gallons per week)Quantity Supplied (gallons per week)$12,0001,000$21,5001,500$31,0002,000$45002,500 

A. $1 per gallon and 2,000 gallons per week B. $2 per gallon and 1,500 gallons per week C. $4 per gallon and 2,000 gallons per week D. $3 per gallon and 2,000 gallons per week