Two ways to postpone diminishing returns are:
a. Increase labor and improve education.
b. Increase all resources together and make the production process more efficient.
c. Actually, there is no way to postpone diminishing returns.
d. Keep the government budget balanced and increase the money supply at a rate that keeps inflation low (e.g., at 2 or whatever the national goal happens to be).
e. Increase the quantity of capital.
Question 2
Fiscal policies are different from monetary policies because:
a. Fiscal policies affect only aggregate supply and monetary policies affect only aggregate demand.
b. Fiscal policies affect only aggregate demand and monetary policies affect only aggregate supply.
c. Fiscal policies are enacted by central banks and monetary policies are enacted by Congress or Parliament.
d. Fiscal policies are mainly concerned with changing government spending and taxation, and monetary policies are mainly concerned with changing the money supply.
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