Carlson earns an income of $10,000 per month. Under the federal income tax system, the first $9,000 he earns is taxed at 10% and the remaining income is taxed at 20%. The tax owed by Carlson equals _____

Which of the following would be most likely to induce Congress and the president to conduct contractionary fiscal policy? A significant

A) increase in labor productivity. B) decrease in oil prices. C) increase in inflation. D) decrease in real GDP.

On the graph above, if the U.S. economy is at point B in 2009, then the economy in 2010 is best represented by point ________

A) A B) B C) C D) D E) any of the labeled points is as good as the others