If the price level rises, what will happen to aggregate supply curve?

Refer to Figure 14-2. Now suppose that the government delays Xenophone's entry and Gigacom moves first, what is the likely outcome in the market?

A) Both offer DSL internet service; Xenophone earns a profit of $8 million and Gigacom earns a profit of $7 million. B) Xenophone offers internet service via cable line and earns a profit of $4 million while Gigacom offers DSL internet service and earns a profit of $4.5 million. C) Xenophone offers DSL internet service and earns a profit of $5 million while Gigacom offer internet service via cable line and earns a profit of $6.5 million. D) Both offer internet service via cable line; Xenophone earns a profit of $6 million and Gigacom earns a profit of $9 million.

The aggregate demand curve will shift outward and to the right when the Federal Reserve undertakes which of the following monetary policies?

a. Open market purchases of government securities b. An increase in the discount rate c. An increase in the reserve requirement d. A reduction in loans to the U.S. Treasury e. A more lenient supervision of savings and loan institutions