According to the Taylor rule, if the inflation rate in the last year was 2% and output was equal to its full-employment level, the nominal Fed funds rate should be

If four workers can produce 18 chairs a day and five can produce 20 chairs a day, the marginal product of the fifth worker is

A) 2 chairs. B) 3 chairs. C) 4 chairs. D) 38 chairs.

The Keynesian perspective on the effect of an increase in taxes is that this policy action

A) generates reductions in consumption and in saving. B) generates reductions in consumption and an increase in saving to pay for the new taxes. C) has no impact on consumption. D) increases current consumption and reduces future consumption.