If policymakers attempt to offset a favorable inflation shock with monetary ________, the resulting long-run equilibrium will be at ________ inflation rate compared to allowing the self-correcting mechanism return the economy to potential output.

The tax on gasoline in England is close to $3.20 per gallon, whereas the federal excise tax on gasoline in the United States is 18.4 cents per gallon. Suppose the U. S. government raised the federal excise tax to the English gas tax rate of $3.20

Explain the likely impact of that higher tax rate on conservation, oil exploration, and the development of substitutes for gasoline.

The largest portion of discretionary spending is devoted to

A) foreign aid. B) national defense. C) paying federal employees. D) the space program.