An unmarried couple holding joint title to their condominium constitutes a household

Which of the following statements correctly identifies a reason why inflation can be used as a countercyclical policy tool?

A) Inflation sometimes increases the demand for workers that increases output and helps combat slowdowns. B) Inflation reduces money costs and hence stimulates an economy during slowdowns. C) Inflation increases consumer demand which is necessary for combating slowdowns. D) Inflation increases consumer confidence, which is an absolute necessity to counter act business cycles.

Under which of the following is consumer surplus zero?

A) all types of monopoly B) only single-price monopoly C) only perfectly price-discriminating monopoly D) only price discrimination on the basis of the number of units purchased E) perfect competition