Using the above figure, the price facing the perfectly competitive firm in the long run will be

The demand curve faced by a monopolistically competitive firm coincides with its marginal revenue curve

a. True b. False Indicate whether the statement is true or false

Use the following graph to answer the next question.Suppose an economy's full employment output is at the level Q1, and the economy's current aggregate demand is represented by AD2. If the government swiftly implements contractionary fiscal policy that immediately shifts the economy's aggregate demand to AD1, the short-to-medium term aggregate demand would be most closely represented by

A. AD0. B. AD1. C. AD2. D. AD3.