Refer to Figure 5.5. Which diagram shows the income-consumption curve resulting from a decrease in income?

In a monopolistically competitive market

A) firms are price setters. B) barriers to entry are high. C) firms earn positive economic profit in the long run. D) products are undifferentiated.

A downward shift in the Fed's policy reaction function is a ________ of monetary policy, and the aggregate demand curve ________.

A. easing; shifts right B. tightening; shifts right C. tightening; shifts left D. easing; shifts left