The problem of political instability has been greatest in which continent?

Which of the following correctly explain Ricardian equivalence?

a. Government spending that is financed by borrowing has a smaller effect on the economy than government spending financed by raising taxes. b. Consumers do not base current spending on future expected tax liabilities. c. Government borrowing can function like increased current taxes, reducing current household and business expenditures. d. The government should balance its budget by equating revenue and expenditure in every fiscal year. e. Government spending does not crowd out private investment.

Refer to the given data. In maximizing its profit, this firm will employ:

A.  2 units of labor.
B.  3 units of labor.
C.  4 units of labor.
D.  5 units of labor.