The imposition of a minimum wage in the unskilled labor market creates labor surplus or unemployment

Refer to Scenario 2. The average fixed cost of 2 units of output is:

A) $8.00. B) $8.50. C) $12.00. D) $20.50.

In addition to open market operations and the required reserve ratio, another tool of monetary policy available to the Fed is

A) fiscal policy. B) tax rates and the progressivity of the income-tax system. C) government spending and various transfer-payment programs. D) the difference between the discount rate and the federal funds rate.