If no fiscal policy changes are made, suppose the current aggregate demand curve will increase horizontally (shift rightward) by $1,000 billion and cause inflation. If the marginal propensity to consume is 0.90, federal policymakers could follow Keynesian economics and restrain inflation by decreasing:

The nondiscriminating monopolist's demand curve:

A. is less elastic than a purely competitive firm's demand curve. B. is perfectly elastic. C. coincides with its marginal revenue curve. D. is perfectly inelastic.

In a perfectly competitive market, when the price is greater than the minimum average total cost for all firms:

A. positive economic profits are being earned. B. firms will enter, causing the price to increase. C. firms will exit, causing the price to drop. D. None of these is true.