Suppose a firm is considering producing zero units of output. We call this exiting an industry in the short run and shutting down in the long run

Refer to Figure 2-15. One segment of the circular flow diagram in the figure shows the flow of wages and salaries from market K to economic agents M. What is market K and who are economic agents M?

A) K = product markets; M = firms B) K = factor markets; M = firms C) K = product markets; M = households D) K = factor markets; M = households

If the price of inputs rises and personal income taxes rise:

a. Aggregate demand falls, and aggregate supply rises. b. Aggregate demand and aggregate supply rise. c. Aggregate demand and aggregate supply fall. d. Neither aggregate demand nor aggregate supply change. e. None of the above.