In 2007, the Fed engaged in inflation targeting when it lowered the interest rate in anticipation of a recession.

Which of the following will cause the marginal cost curve of making cigarettes to shift?

A) a $5 million penalty charged to each cigarette maker B) a $1 per pack tax on cigarettes C) a $1 million advertising campaign by the American Cancer Society D) All of the above.

List some of the reasons why GDP should not be considered an effective measure of the standard of living in a country.

What will be an ideal response?