All banks are required to join the Fed

Refer to Figure 24-4. Given the economy is at point A in year 1, what is the inflation rate between year 1 and year 2?

A) 0.9% B) 1.8% C) 2.7% D) 3.0%

The government is undertaking a policy to deal with a monopoly. As a result, the monopoly's ATC curve is shifting upward. Most likely, which of the following policies is being used?

a. antitrust action b. a regulatory commission sets a fair price c. a regulatory commission sets a price equal to marginal cost d. laissez-faire e. encouraging concentration