An unexpected fall in car sales should send bond prices __________ and stock prices __________

When the Fed decreases the money supply: a. aggregate demand and aggregate supply both increase

b. aggregate demand increases, which leads to movement along the short-run aggregate supply curve. c. aggregate demand decreases, which leads to movement along the short-run aggregate supply curve. d. aggregate supply increases, which leads to movement along the aggregate demand curve. e. aggregate supply decreases, which leads to movement along the aggregate demand curve.

When marginal revenue equals price for all levels of output, the firm is operating in a perfectly competitive market

a. True b. False