Refer to Figure 14.2. Hurricane Katrina was responsible for destroying a large portion of oil and natural gas refining capacity on the Gulf coast in 2005. Other things equal, this would best be represented by a movement from

Making choices on the margin means

A) scribbling on the edges of your notebook paper. B) comparing all relevant alternatives systematically and incrementally. C) making a decision based on emotions. D) making decisions in the largest possible increments. E) taking account of all marginal benefits, all opportunity costs, and all sunk costs.

Which of the following theories favor(s) a simple money growth rate rule?

a. real business cycle theory b. The monetarist theory c. new classical theory d. All of the above e. None of the above