An increase in aggregate demand in the economy will have what ...

[drink]

An increase in aggregate demand in the economy will have what effect on macroeconomic equilibrium in the long run?
 
  A) The price level will rise, and the level of GDP will fall.
  B) The price level will rise, and the level of GDP will be unaffected.
  C) The price level will fall, and the level of GDP will fall.
  D) The price level will fall, and the level of GDP will rise.

Question 2

In the eyes of the law, a corporation is a legal person, separate from its owners. Explain what this means.
 
  What will be an ideal response?

[joanwhite]

Answer to Question 1

B

Answer to Question 2

This means that the firm is a separate legal entity from its owners. Under the corporate form of business, the owners of a firm have limited liability, which means that if the firm fails, the owners can never lose more than the amount they have invested in the firm. The personal assets of the owners of the firm are not affected by the failure of the firm.

[drink]

YES! Correct, THANKS for helping me on my review

[apple]

Excellent