If (X ? IM) < 0, then capital inflows

When the monopolistically competitive firm shown in the above figure is at its long-run equilibrium, it will be

A) producing the efficient scale of output and is at point A on the ATC curve. B) producing more than the efficient scale of output and is at point C on the ATC curve. C) producing at less than the efficient scale of output and is at a point such as F on the ATC curve. D) producing the efficient scale of output and is at point B on the MC curve.

During a recession, total public assistance payments and unemployment compensation payments automatically increase while income taxes automatically decrease. Which of the following best describes the effect of these changes on aggregate demand? a. Aggregate demand will be less than it would be without these automatic stabilizers. b. Aggregate demand will be the same as it was before the

recession. c. Aggregate demand will be more than it would be without these automatic stabilizers. d. Aggregate demand will be greater than it was before the recession.