The debate over income distribution focuses on the tradeoff between:

Refer to Figure 4-4. The figure above represents the market for iced tea. Assume that this is a competitive market. If the price of iced tea is $3, what changes in the market would result in an economically efficient output?

A) The price would decrease, the quantity supplied would increase, and the quantity demanded would decrease. B) The price would decrease, quantity demanded would increase, and quantity supplied would decrease. C) The price would decrease, the demand would increase, and the supply would decrease. D) The quantity supplied would decrease, the quantity demanded would increase, and the equilibrium price would decrease.

In 2008–2009, the U.S. economy provided a

A. healthy climate for investment spending. B. change in aggregate demand that fostered more capital formation. C. sluggish climate for investment spending. D. booming economy that spurred investment spending.