Special savings accounts that individuals would pay into and then use to pay for medical expenses (or use to purchase a catastrophic health insurance policy) are called

Suppose that rising productivity increases potential output in each period by 4%. What kind of monetary policy would be needed to maintain a zero rate of inflation at full employment?

A. It should keep money supply constant. B. It should increase money supply by 4% in the first period and thereafter, hold money supply constant. C. It should increase money supply by 4% per period. D. It should decrease money supply by 4% each period.

Refer to Figure 2-2. If Mendonca chooses to produce 120 pounds of meat, how much vegetables can it produce to maximize production?

A) 0 pounds of vegetables B) 60 pounds of vegetables C) 100 pounds of vegetables D) 160 pounds of vegetables