In order to impact aggregate demand and the economy, the Fed needs to be able to influence:

Refer to the above table. If the product price increases from $3 to $4, then at the wage rate of $15, the firm will hire:

 

A.  2 workers

B.  3 workers

C.  4 workers

D.  5 workers

Under the original Gramm-Rudman-Hollings Act, a congressionally enacted budget deficit that was larger than the targeted amount would

A. result in both automatic tax cuts and spending increases. B. result in automatic spending cuts. C. result in automatic tax cuts. D. result in automatic spending increases.