Market economies are likely to suffer from recessions and inflation because the government plans all economic activity

The tax cuts and entitlement program expansions of the 1980s led to such ________ federal deficits in the 1990s that fiscal policy ________ for smoothing-out business cycle fluctuations

A) small, again became the preferred tool B) small, was all but abandoned C) large, again became the preferred tool D) large, was all but abandoned

Graphically, the optimum choice of a consumer is determined at: a. the point of intersection of the lowest indifference curve and the budget constraint. b. the point of intersection of the budget line and the vertical axis

c. the point where the highest indifference curve is tangent to the budget constraint. d. the point of intersection of the budget line and the horizontal axis.