If the aggregate demand curve shifts ________ faster than the long-run aggregate supply curve, then ________ occurs

Following the economic crisis in 1994-1995, the Mexican peso fell sharply in value. What will be the main economic effects in Mexico of such an exchange rate change?

a. It will decrease aggregate demand and aggregate supply, so that output will certainly fall, and prices may fall as well. b. It will increase aggregate demand and aggregate supply, so that output will certainly rise, and prices may rise as well. c. It will increase aggregate demand and decrease aggregate supply, so that prices will certainly rise and output may rise as well. d. It will decrease aggregate demand and increase aggregate supply, so that prices will certainly fall and output may fall as well.

A monopolistically competitive industry combines elements of both competition and monopoly. The monopoly element results from:

A. the likelihood of collusion. B. high entry barriers. C. product differentiation. D. mutual interdependence in decision making.