Total profit is maximized if the slope of the total profit curve is

In a persisting demand-pull inflation,

A) aggregate supply decreases and aggregate demand increases. B) aggregate demand decreases and aggregate supply decreases. C) aggregate demand increases and potential GDP decreases. D) aggregate supply increases and aggregate demand increases. E) None of the above answers is correct.

If the prices would have been much higher ten years ago for the items the average consumer purchased last month, then one can likely conclude that

A) the aggregate price level has declined during this ten-year period. B) the average inflation rate for this ten-year period has been positive. C) the average rate of money growth for this ten-year period has been positive. D) the aggregate price level has risen during this ten-year period.