Starting from long-run equilibrium, if the public anticipates that policymakers will increase aggregate demand by less than policymakers do increase aggregate demand, and if the short-run aggregate supply curve fully adjusts to the (incorrectly) anticipated increase in aggregate demand, then Real GDP will __________ and the price level will __________

The shutdown point of a perfectly competitive firm occurs at the minimum point of its average total cost curve

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

Leonard, Sheldon, Raj, and Penny each like science fiction moves. The price of a special boxed set of Star Trek DVDs is $50 . Leonard values the set of movies at $70, Sheldon at $65, Raj at $60, and Penny at $55 . Suppose that if the government taxes DVDs at $10 each, the price rises to $60 . A consequence of the tax is that consumer surplus shrinks by

a. $50 and tax revenues increase by $30, so there is a deadweight loss of $20. b. $35 and tax revenues increase by $30, so there is a deadweight loss of $5. c. $20 and tax revenues increase by $20, so there is no deadweight loss. d. $15 and tax revenues increase by $20, so there is no deadweight loss.