Firms in a monopolistically competitive market will produce where the difference between TR and TC are maximized

Suppose fiscal authorities raise state income tax rates. As a result, disposable income falls, thereby

A) decreasing consumption spending, and causing the aggregate demand curve to shift to the left. B) decreasing consumption spending, and causing a movement along a given aggregate demand curve. C) increasing saving, and causing the aggregate demand curve to shift to the left. D) increasing saving, and causing a movement along a given aggregate demand curve.

Cyclical unemployment

A. occurs even when an economy is producing at a point on its production possibilities frontier. B. occurs only during a recession. C. tend to occur when an economy experiences inflation. D. is a part of an economy's natural rate of unemployment.