In a perfectly competitive market in which identical firms face the same horizontal marginal cost curve, if demand increases, then the amount of consumer surplus will

If consumers tend to buy higher quantities of goods and services for which prices rose in the past year compared to the quantities of goods and services for which prices fell, we would say the economy has likely experienced

A. reflation B. stagflation C. deflation D. inflation

In the Cambridge approach, if k is .5, total output is $50 billion, and the money supply is $100 billion, the price level is

A) 0.5. B) 4.0. C) 3.0. D) 10.0.