Assume that for a particular firm's output price = $80, marginal cost = $30, average total cost = $25. This information suggests that the firm in question has:

Which of the following will shift the aggregate demand curve to the left, ceteris paribus?

A) an increase in disposable income B) an increase in expected profits for firms C) an increase in net exports D) an increase in interest rates

According to classical theory, if the aggregate demand curve decreased and the economy experienced unemployment, then:

a. the economy would remain in this condition indefinitely. b. the government must increase spending to restore full employment. c. prices and wages would fall quickly to restore full employment. d. the supply of money would increase until the economy returned to full employment.