Which of the following would policy makers monitor to understand personal consumption expenditures (PCEs):

A decrease in the price level makes consumers feel wealthier, so they purchase more. This logic helps explain why the aggregate-demand curve

a) is vertical. b) slopes upward. c) is horizontal. d) slopes downward.

Firms that charge a price for their output in excess of marginal cost in the short run

A) are not maximizing profits. B) cannot find buyers for their output. C) are charging a markup. D) will suffer huge losses.