In the extended classical model, an unexpected decrease in aggregate demand would cause unanticipated inflation to be ________ and cyclical unemployment to be ________

In early 2012 the price of computer hard disc drives rose. In a demand and supply model, shifts in what curve or curves could have brought about the higher price?

What will be an ideal response?

Tommy's Tires operates in a perfectly competitive market. If tires sell for $50 each and ATC = $40 per tire at the profit-maximizing output level, then in the long run

a. more firms will enter the market b. some firms will exit from the market c. the equilibrium price per tire will rise d. average total costs must fall e. marginal revenue will rise