When the economy operates below full employment, an increase in government spending must crowd out another component of GDP

Consider a firm operating with the following: price = 10; MR = 10; MC = 10; ATC = 10 . This firm is:

a. making an economic profit of 10. b. an example of monopolistic competition. c. going to go out of business in the long run. d. a monopolist for a product with a relatively inelastic demand. e. perfectly competitive in long-run equilibrium.

Supply-demand analysis shows that a tax collected from sellers is always fully shifted to buyers

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