Real business cycle theory emphasizes the role of ________ in causing economic fluctuations

The figure above shows Bill's Hotdogs, a monopolistically competitive firm. If other firms enter the market and have hot dogs that are very close substitutes for Bill's Hotdogs, then the demand curve for Bill's Hotdogs will ________

A) shift leftward and become more elastic B) shift rightward and become more elastic C) shift rightward and be parallel to the original demand curve D) shift leftward and be parallel to the original demand curve

Which of the following changes shifts the AD curve down and to the left?

A. A decrease in income taxes B. An increase in the future marginal productivity of capital C. A decline in the nominal money supply D. A decrease in the risk on nonmonetary assets