Refer to Scenario 1. What is the total output when 2 hours of labor are employed?

Proponents of the estate and gift tax argue that the tax is necessary because

A) it generates a large portion of total federal revenue. B) it prevents "unfair" accumulation of wealth across generations. C) it is the primary source of funding for Medicare and Medicaid. D) it is only applied to items that have not previously been taxed.

An economy in which output has decreased and prices have decreased would suggest a:

A. decrease in short-run aggregate supply. B. increase in aggregate demand. C. increase in short-run aggregate supply. D. decrease in aggregate demand.