Assume firms break even in an industry. New firms ________ attracted to the industry and current ones ________ exiting it.

In the circular flow diagram, ________ supply the factors of production, and ________ goods and services

A) firms; sell B) households; buy C) firms; buy D) households; sell

If the economy is operating on the relatively vertical segment of the aggregate supply curve, an increase in government spending causes a _____ change in the price level and a _____ change in output.

a) big; big b) big; small c) small; big d) small; small