Suppose Congress decreases income taxes. This is an example of

If perfectly competitive firms are maximizing their profit and are making an economic profit, the market ________ in a short-run equilibrium and ________ in a long-run equilibrium

A) is; is B) is; is not C) is not; is D) is not; is not E) is; might be

In the quantity equation framework for understanding the determinants of long-run inflation, a drop in consumer confidence ________ velocity, putting ________ pressure on inflation

A) raises, upward B) raises, downward C) lowers, upward D) lowers, downward