Refer to the accompanying figure. Growing 1,000 bushels of wheat and no bushels of corn each year is:

A. efficient and attainable.
B. inefficient but attainable.
C. inefficient and unattainable.
D. efficient but unattainable.

Answer: A

Economics

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According to supply-side fiscal policy, reducing tax rates on wages and profits will:

a. create demand-pull inflation. b. lower the price level but may trigger a recession. c. reduce both unemployment and inflation. d. result in stagflation.

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In Figure 5.1, the demand curve that is perfectly inelastic is on graph:

A. A. B. B. C. C. D. D.

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