Refer to Figure 15-13. In the figure above, if the economy in Year 1 is at point A and is expected in Year 2 to be at point B, then the appropriate monetary policy by the Federal Reserve would be to

A) lower income taxes. B) raise interest rates.
C) raise income taxes. D) lower interest rates.

B

Economics

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The usual results of an adverse supply shock are

a. a rise in prices and a fall in output. b. a fall in prices and a rise in output. c. increased growth and lower inflation. d. a rise in prices and a rise in output.

Economics

Which of the following would NOT be considered a determinant of marginal productivity?

A) talent B) gender C) experience D) training

Economics