Author Question: Refer to Figure 27-4. In the graph above, suppose the economy is initially at point A. The movement ... (Read 86 times)

kshipps · **on:** Jun 29, 2018

Refer to Figure 27-4. In the graph above, suppose the economy is initially at point A. The movement of the economy to point B as shown in the graph illustrates the effect of which of the following policy actions by Congress and the president?

A) an increase in the marginal income tax rate B) an open market purchase of Treasury bills
C) an increase in interest rates D) an increase in transfer payments

Question 2

Refer to Figure 24-4. Given the economy is at point A in year 1, what is the inflation rate between year 1 and year 2?

A) 0.9 B) 1.8 C) 2.7 D) 3.0