Place point X on the graph to indicate full employment, point Y to indicate economic growth and point Z to indicate a bad depression.

If firms have different costs and market demand only supports the quantity the incumbent produces, then the incumbent's threat to use limit pricing

A) is credible. B) is not credible. C) would be illegal. D) is unable to be determined with the information given.

The direction of fiscal policy became more contractionary from:

Refer to the data in the table above.
A. 2005 to 2006

B. 2001 to 2002

C. 2002 to 2003

D. 2003 to 2004