Last month unemployment fell to 4 percent, its lowest level in ...

[berenicecastro]

Last month unemployment fell to 4 percent, its lowest level in years. The economy is growing rapidly, but consumer prices have risen at an annual rate of 10 percent during the last six months. Which of the following policies would be most appropriate under these circumstances?
 a. An increase in both government spending and taxes.
  b. An increase in taxes.
  c. A reduction in taxes.
  d. An increase in government spending.

Question 2

Which economic theory argues that changes in velocity are predictable and the crowding-out effect is substantial?
 a. Classical theory.
  b. Keynesian theory.
  c. Monetarist theory.
  d. Marxist theory.

[Ddddd]

Answer to Question 1

b

Answer to Question 2

c

[berenicecastro]

Thank you

[Ddddd]

No problemo