Which combination of monetary and fiscal policies might policymakers elect to ward off a potential recession?
A) Fed sale of bonds combined with tax rate increases
B) Fed sale of bonds combined with tax rate decreases
C) Fed purchase of bonds combined with tax rate increases
D) Fed purchase of bonds combined with tax rate decreases
Question 2
When existing firms leave a perfectly competitive industry, ________.
A) the equilibrium price decreases, while the equilibrium quantity increases
B) the equilibrium price increases, while the equilibrium quantity decreases
C) both the equilibrium price and quantity increase
D) both the equilibrium price and quantity decrease
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