Compared to businesses with market power, businesses in perfect competition will charge __________ prices and sell __________ output.

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.

We cannot be certain that a general sales tax will decrease labor supply because _____

a. of the effect of lower income on labor supply b. of the effect of higher tax revenue on consumption c. of the effect of the sales tax on labor supply d. we do not know about labor demand