If the demand and supply curves are described by the following equations P = a - bQ and P = c + dQ, respectively, the equilibrium price is P* = (ad + bc) / (b + d)

Excess capacity exists when a firm produces

A) more than the profit-maximizing level of output. B) less than the quantity that minimizes average total cost. C) less than the quantity that minimizes marginal cost. D) more than the quantity that minimizes marginal cost. E) None of the above answers is correct.

A policy of a tax cut combined with increases in government purchases would shift the aggregate demand curve to the left

a. True b. False Indicate whether the statement is true or false