The focus of firm decisions in the short run is primarily on

Specialization and trade

A) does not benefit anyone. B) allows nations to produce inside their individual production possibilities frontier. C) allows nations to consume combinations of products that are outside their individual production possibilities frontier. D) shifts the production possibilities frontier inward. E) shifts the production possibilities frontier outward.

Refer to the diagram, where T is tax revenues and G is government expenditures. All figures are in billions of dollars. If the full-employment and actual GDP are each $400 billion, government can balance its cyclically adjusted budget by:

A.  increasing T by $40 billion.
B.  reducing G by $20 billion.
C.  reducing T by $20 billion.
D.  increasing T by $10 billion and reducing G by $20 billion.