Congress is debating whether to raise taxes by $100 billion or decrease spending by $100 billion in order to eliminate a budget deficit. Which action will have the larger effect on equilibrium GDP?

The figure above shows the market for milk. If the government pays the milk producers a subsidy and production increases to 300 gallons per day

A) the market is efficient because the marginal social benefit from the last gallon of milk exceeds its marginal social cost. B) the market is efficient because the total social benefit from milk exceed the total social cost. C) there is a deadweight loss because the marginal social benefit from the last gallon of milk exceeds its marginal social cost. D) there is a deadweight loss because the marginal social cost of the last gallon of milk exceeds its marginal social benefit.

An economy that grows in world interdependence experiences

(a) growing trade on the basis of comparative advantage. (b) more vulnerability to the business cycles of trading partners. (c) wealth accumulation. (d) all of the above.