Production data for Joe's Pizza Parlor are as follows. For simplicity assume that labor is the only input. Each pizza sells for $5.  Number of WorkersPizzas Baked Per Day00110218324430532How many workers will Joe hire if he must pay each one $35 a day? 

How do advocates of discretionary stabilization policy view frequent changes in spending and tax policy?

a. The changes make the economy more difficult to forecast. b. The changes make life more difficult and hectic for Congress and the Fed. c. The changes smooth out the business cycle, making planning easier. d. The changes cause more instability in the economy and make planning more difficult.

According to the rational expectations theory,

a. on average people have very little idea of what to expect from government policy makers. b. people form expectations by focusing only on the private sector. c. people do not consider likely government policies when forming expectations. d. people form expectations, in part, by considering the probable future effects of changes in government policy.