Insurers reduce the problem of moral hazard by limiting coverage of open-ended treatments like psychotherapy or fully elective treatments like some cosmetic surgeries

At the beginning of 2015, a country is at full-employment. During 2015, oil-producing countries decrease oil production leading to much higher oil prices. The higher oil prices can

A) increase aggregate demand and lead to an expansion. B) increase aggregate supply and lead to an expansion. C) decrease aggregate demand and lead to a stagflation. D) decrease aggregate supply and lead to a stagflation. E) decrease aggregate demand and lead to a higher price level.

Which of the following statements is true?

a. Whenever marginal cost is below average total cost, marginal cost is decreasing. b. Whenever marginal cost is above average total cost, marginal cost is decreasing. c. Whenever marginal cost is above average total cost, average total cost is increasing. d. When marginal cost equals average total cost, marginal cost is minimized