In the above figure, for a single-price monopoly the deadweight loss is equal to the area

If expectations are adaptive, how will the economy adjust to a new long-run equilibrium in response to contractionary monetary policy? Support your answer with a graph of the Phillips curve

What will be an ideal response?

If a firm goes bankrupt, the bondholders will get paid back before the stockholders get any money

a. True b. False Indicate whether the statement is true or false