Government tax revenues ________ during an expansion and ________ during a recession, which leads to larger budget deficits during the ________ phase of the business cycle

Suppose that in a perfectly competitive market, the market supply of a good increases. As a result, the individual firm's:

a. supply curve would shift outward and the firm would increase output. b. supply curve would shift inward and the firm would decrease output. c. average-total-cost curve would shift upward and the firm would increase output. d. marginal-revenue curve would shift upward and the firm would increase output. e. marginal-revenue curve would shift downward and the firm would decrease output.

If Johanna purchases a bond for $4,500 that promises to pay her $5,000 one year later, what is the interest rate on the bond?

a. 5.3 percent b. 5.6 percent c. 10.0 percent d. 11.1 percent e. 10.5 percent