Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 

The upward trend in the U.S. labor force participation rate the past 50 years is explained by

A) the increase in the population. B) the increase in the male labor force participation rate. C) the increase in the number of discouraged workers. D) the increase in the female labor force participation rate. E) Both answers B and D are correct.

If, when a firm doubles all its inputs, its average cost of production decreases, then production displays

A) declining fixed costs. B) diseconomies of scale. C) diminishing returns. D) economies of scale.