Where Y is GDP, C is consumption, I is investment, (G ) is government spending, (T ) is net taxes, and there is no international trade, public saving equals:

Stagflation is defined as a period when real GDP ________ and the price level ________

A) is constant; rises rapidly B) decreases; increases C) increases; increases D) decreases; decreases E) increases; decreases

A firm in a perfectly competitive market

a. can raise the price to sell more but by selling more will end up earning less economic profit than it had earned before the price increase b. can cut the price to sell more but by selling more will end up earning less economic profit than it had earned before the price cut c. can increase its supply to lower the price and thereby raise its economic profit d. can decrease its supply to raise the price and thereby raise its economic profit e. is a price taker, that is, accepts the market price for its good as given