If there was no profit effect or misperception effect in the short run, then SRAS is ____ and LRAS is ____

For a time, either R. J. Reynolds or Phillip Morris raised prices of cigarettes twice a year by about 50 cents per carton. The other firms in the industry raised their prices by the same amount. Economists call this: a price war. a. predatory pricing

b. a price war. c. price leadership. d. producer sovereignty.

If the marginal propensity to consume is 0.8 and aggregate expenditures initially decrease by $200 million, then the aggregate demand curve will shift ________ , holding the price level constant

a. inward by $1 billion b. outward by $1 billion c. inward by $200 million d. outward by $200 million