The level of technology, the rate of interest, expectations of future economic growth, and the rate of capacity utilization all determine
a. life cycle wealth
b. investment
c. permanent income
d. transitory income
e. dissaving
B
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Refer to the figure below. 
In the figure, which interval represents a business cycle expansion?
A. A to B B. B to D C. B to C D. A to C
The figure above shows the market for milk. If a drought lowers the productivity of dairy cows so that they give less milk, then the efficient quantity of milk ________ and the consumer surplus ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
Refer to Table 2-15. What is Jack's opportunity cost of mowing a lawn?
A) one-half of a garden cultivated B) two lawns mowed C) two-thirds of a garden cultivated D) one and a half lawns mowed
According to new growth theory, technological advances can be promoted
A) from within the economy. B) if only the right fiscal and monetary policies are in place. C) in a few rare cases. D) through industrial policy. E) none of the above