The figure above shows Roger's production possibilities frontier. Point a is an ________ point and at that point production is ________

A rise in the price level brings a ________ in the real wage rate that ________ profits which leads to ________ production

A) rise; reduces; increasing B) rise; reduces; decreasing C) fall; increases; increasing D) rise; increases; decreasing E) fall; decreases; decreasing

Explain the time-inconsistency problem. What is the likely outcome of discretionary policy? What are the solutions to the time-inconsistency problem?

What will be an ideal response?