Monetary and fiscal policy are primarily tools for long-run economic stabilization

Of Social Security benefits and federal income tax brackets, which is indexed?

a. Both are indexed. b. Only Social Security benefits are indexed. c. Only federal income tax brackets are indexed. d. Neither is indexed.

The marginal rate of substitution is

A) equal to unit changes in the quantities of both goods so that utility rises. B) the slope of the budget line at all points. C) the change in the quantity of one good that just offsets a unit change in another good, keeping utility constant. D) found by adding additional units.