Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:

If the federal government runs a budget deficit, but the budget deficit as a percent of GDP is less than the growth rate of real output, the:

a. national debt will decrease as a share of GDP. b. national debt will remain a constant share of GDP. c. national debt will increase as a share of GDP. d. size of the national debt (in dollar value) will decline.

The marginal revenue curve of a perfectly price-discriminating monopolist

a. coincides with the marginal cost curve b. lies below the market demand curve c. coincides with the market demand curve d. is a horizontal line through the midpoint of the market demand curve e. does not exist