Diminishing marginal returns explains why a firm’s long-run average total cost curve is U shaped.

In the above figure, which curve depicts the supply of land for Chicago's "Magnificent Mile"?

A) curve F B) curve G C) curve H D) curve I

When the economy is hit by a negative demand shock and the central bank pursues policies to increase aggregate demand to its initial level, then

A) inflation will be lower. B) output will be at its potential. C) output will be lower. D) inflation will be unchanged. E) both B and D.