Suppose that a borrower has a near-perfect credit history before the bank loans him some money. Shortly after the loan has been made, he loses his job and spends money recklessly. This describes the problem known as

According to the intertemporal substitution effect, a higher price level

A) decreases the quantity of real GDP demanded. B) lowers the costs of building new plants and equipment. C) increases the quantity of real GDP demanded. D) makes it less costly for people to buy houses and cars.

Relative to a perfectly competitive market with the same cost and demand, a single-price monopolist produces ________ output and has a ________ price

A) more; higher B) less; lower C) more; lower D) less; higher