Refer to Figure 2-9. Carlos Vanya grows tomatoes and strawberries on his land. His land is equally suited for growing either fruit. Which of the graphs in Figure 2-3 represents his production possibilities frontier?

Which of the following is illegal according to the antitrust laws?

A) the use of coupons B) price discrimination based on cost differences C) vertical mergers D) price fixing

If the income-expenditure multiplier equals 4, and a 1 percent increase in the real interest rate reduces autonomous spending by 100 units, then a 1,000 unit recessionary gap can be eliminated by ________ the real interest rate by ________ percent.

A. increasing; 2.5 B. decreasing; 2.5 C. increasing; 10.0 D. increasing; 4.0