An industry in which economies of scale allow one firm to supply the entire market at the lowest possible cost is called a

Refer to Figure 16-1. Suppose the economy is in short-run equilibrium below potential GDP and Congress and the president lower taxes to move the economy back to long-run equilibrium. Using the static AD-AS model in the figure above, this would be depicted as a movement from

A) A to B. B) C to B. C) A to E. D) B to A. E) B to C.

Refer to Figure 29-1. Italians cut back on smoking and cut their demand for American cigarettes in half. Assuming all else remains constant, this would be represented as a movement from

A) A to D. B) D to C. C) B to C. D) B to A.