The wealth effect helps explain what feature in the aggregate demand and aggregate supply model?

In the figure above, production efficiency occurs at ________, and allocative efficiency occurs at ________

A) all points on the PPF; only one point on the PPF B) only one point on the PPF; all points on the PPF C) only one point on the PPF; only one point on the PPF D) all points on the PPF; all points on the PPF E) all points on the PPF; all points above the PPF

In the United States, interest payments on the federal debt were about ________ of total federal expenditures in 2011, and therefore large tax increases or significant cutbacks in other types of federal spending are generally considered ________ for

the government to be able to continue making the interest payments. A) 55%; necessary B) 28%; unnecessary C) 28%; necessary D) 6%; unnecessary