Refer to Scenario 14.1. Marco and Lisette decide to help each other out and agree to split any medical bills from their doctor. With this new arrangement, Lisette's dominant strategy will give her a net benefit of

Real GDP definitely increases if

A) the AS curve shifts leftward and the AD curve does not shift. B) the AD curve shifts leftward and the AS curve shifts rightward. C) both the AD curve and the AS curve shift rightward. D) both the AD curve and AS curve shift leftward. E) potential GDP decreases so that real GDP exceeds potential GDP.

The monopolist will choose the price and output combination at which

A) MC equals AR. B) MC equals MR. C) MC equals price. D) MR equals AR.