The cyclical surplus is $450 billion, potential output is $10 trillion and tax rate is 15 percent. With this information, we can infer that the actual output of this economy is:

Risk averse individuals will fully insure to avoid risk. ?

Answer the following statement true (T) or false (F)

An upward shift in the Fed's policy reaction function is a ________ of monetary policy, and the aggregate demand curve ________.

A. tightening; shifts left B. easing; shifts left C. tightening; shifts right D. easing; shifts right