When real GDP falls for two consecutive quarters the economy is in a

With reference to the graph above, if the intended aim of the price ceiling set at $6 was a net increase in the well-being of consumers:

A. then the policy was effective since consumers gained in surplus overall.
B. then the policy was ineffective since consumers gained in surplus overall.
C. then the policy was ineffective since consumers lost surplus overall.
D. then the policy was effective since consumers lost surplus overall.

If the Fed reduces the money supply to reduce inflation, a floating exchange rate will aid the Fed in fighting inflation because

A. as the money supply is decreased, the interest rate will increase, and the price of U.S. exports will fall and the price of U.S. imports will rise. B. as the money supply is decreased, the interest rate will increase, and the price of U.S. exports will rise and the price of U.S. imports will fall. C. as the money supply is decreased, the interest rate will increase, and the price of U.S. exports and U.S. imports will fall. D. as the money supply is decreased, the interest rate will increase, and the price of both U.S. exports and U.S. imports will rise.