In a closed economy, with total output and taxes fixed, if government spending rises:

In the above figure, a movement from point B to point C could be explained by

A) an increase in the price level. B) a decrease in the quantity of money in circulation. C) increased government spending. D) the real-balance effect.

Every firm has to bear its fixed costs even when it produces nothing

a. True b. False Indicate whether the statement is true or false