If the price level increases, then there will be
a. a movement upward along the AD curve
b. a downward movement along the AD curve
c. an AD curve shift to the right
d. an AD curve shift to the left
e. an AS curve shift to the right
A
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
If a firm in monopolistic competition is neither making a profit nor suffering a loss, its AR curve is
a. horizontal. b. touching its AVC curve. c. touching its ATC curve. d. below its MR curve.
Economists believe that the optimal level of pollution is zero
a. True b. False Indicate whether the statement is true or false
Refer to the data provided in Table 11.1 below to answer the following question(s).
Table 11.1 
Refer to Table 11.1. If the interest rate is 5%, Nashbar Bicycle should
A. fund only the employee fitness center. B. not fund any of the projects. C. fund all of the projects. D. fund all of the projects except for the employee fitness center.