Public saving equals taxes minus government spending minus transfer payments

In the figure above, the elasticity of demand facing the monopoly equals one when it produces ________ units of output

A) h B) j C) k D) none of the above

An increase in the price level in the United States will have what effect on the aggregate expenditure line?

A) Aggregate expenditure will shift upward. B) Aggregate expenditure will become steeper. C) Aggregate expenditure will shift downward. D) Aggregate expenditure will not be affected by an increase in the price level in the United States.