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

_____ varies along a given aggregate demand curve

a. The nominal interest rate in the domestic country b. The exchange rate between the domestic currency and a foreign currency c. The aggregate supply in a foreign country d. The price level in the domestic country e. The prices of resources used in production

Which of the following statements about monopoly is most accurate?

a. The monopolist has no incentive to produce efficiently. b. Regardless of what is produced, the monopolist will use too many resources. c. A monopolist has no incentive to keep costs down. d. The monopolist "understocks" the market and charges too high a price.