The possibility that unanticipated policy changes are an important source of output fluctuations is most consistent with ________

A closed economy is a national economy that

A) doesn't interact economically with the rest of the world. B) has a stock market that is not open to traders from outside the country. C) has extensive trading and financial relationships with other national economies. D) has not established diplomatic relations with other national economies.

Lisa eats both pizzas and burritos. If the price of a pizza increases, Lisa's opportunity set

A) becomes larger. B) becomes smaller. C) is unchanged. D) cannot be determined without more information.