Q1. Do you feel that the FED should have more accountability to publicly elected officials (politicians/policymakers); or, do you believe that FED independence should be preserved? Please explain.

Q2. production process using two inputs, labor and capital, can be written as:

Q = 5LK

MPK = 5L

MPL = 5K

where Q represents output per day (tons). The unit costs of inputs are $150 for labor (L) and $100 for capital (K). Describe the least cost combination of L and K when output is produced at the rate of 1,000 tons per day. Describe the required outlay for 1,000 tons per day.