Ad valorem tariffs on imports are based on a percentage of an import's value; specific tariffs are based on a lump sum per physical unit imported

P-TV and QRS-TV are trying to decide whether to air a sitcom or a reality show in a given time slot. Viewers like both sitcoms and reality shows, but sitcoms are more expensive to produce than reality shows since real actors need to be hired. QRS-TV makes its decision first, and then P-TV observes that choice before making its decision. Both stations know all of the information in the decision tree below.Given the information in this decision tree, if QRS-TV announces that it will air a sitcom, it can expect to:

A. earn $20 million. B. earn $5 million. C. lose $5 million. D. earn $10 million.

Monetary policymakers can respond to the impact that positive inflation shocks have on output by shifting the:

A. short-run aggregate supply curve to the left. B. monetary policy reaction curve right. C. monetary policy reaction curve left. D. short-run aggregate supply curve to the right.