Policy makers who believe that the costs of inflation are very high will tend to favor which of the following during an inflationary gap?

If there are an estimated 20,000 barrels of unknown reserves of oil, annual consumption of oil is 800 barrels, and it is estimated that the supply of oil will be depleted in 50 years, how many barrels of known reserves of oil are there estimated to

be, all else equal? A) 1,250 B) 16,000 C) 20,000 D) 320,000

Macroeconomics often relies on microeconomic analysis because

A) microeconomics is older than macroeconomics. B) microeconomic theory can be tested and macroeconomic theory cannot be tested. C) all aggregates are made up of individuals and firms. D) the effects of macroeconomic subjects such as inflation and unemployment are independent of individual consumers and firms.