Peaks and troughs of the business cycle are known collectively as

Suppose the government reduces its budget deficit at the same time that energy prices rise sharply. Which of the following is most likely to happen?

a. The price level will rise, since higher energy prices increase the cost of production b. Real GDP will fall since both events will tend to cause an economic contraction. c. The price level will fall because the aggregate demand curve has shifted leftward. d. Real GDP will rise as less government spending leads to more opportunities for the private sector. e. Both the price level and real GDP will fall.

Which of the following conditions would prevent price discrimination?

a. an economic profit b. a monopoly market structure c. profit maximization d. the inability to identify those customers willing to pay more e. the ability to prevent low-price customers from reselling to high-price customers