When a firm operates with excess capacity, it must be in a monopolistically competitive market

Under the current structure of Medicare, the movement of the baby boom generation into the retirement phase of life will

a. reduce the overall demand for medical services because the elderly will not have to pay for hospitalization in the future. b. place downward pressure on healthcare prices. c. cause Medicare expenditures to increase and necessitate the need for higher taxes to finance the program. d. do all of the above.

Lower personal income taxes

A) increase aggregate demand. B) decrease disposable income. C) decrease aggregate demand. D) increase transfer payments.