Assume the price of good X is Px, price of good Y is Py, and B is the budget. The formula for the budget line for these two goods is:

If the money supply in the economy were at MS3, to engage in expansionary policy the Federal Reserve Bank would use open market operation to move money supply to:

A. MS2 B. MS1 C. it would stay at MS3 D. MS4

Recessions begin at ________ and end at ________.

A. the highest unemployment rate; the lowest unemployment rate B. a trough; a peak C. a peak; a trough D. the lowest unemployment rate; the highest unemployment rate