An economy in which output has decreased and prices have decreased would suggest a:

Refer to Figure 27-4. In the graph above, suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by Congress and the president?

A) an increase in the marginal income tax rate B) an open market purchase of Treasury bills C) an increase in interest rates D) an increase in transfer payments

Which price index published by the US federal government represents retail price changes?

A) Consumer Price Index B) Producer Price Index C) GDP deflator D) Dow-Jones Industrial Average