In the short run, a rightward shift of the short-run aggregate supply curve ________ real GDP and ________ the price level.
A) decreases; lowers
B) increases; raises
C) decreases; raises
D) increases; lowers
Question 2
A monopolist that operates along the elastic range of its demand will find that
A) its total revenue increases when price decreases.
B) its total revenue decreases when price decreases.
C) its marginal revenue is negative.
D) it is more profitable to operate along the inelastic range of the demand curve.
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