If the price level falls, the aggregate supply decreases as a result of the aggregate demand curve shifting left.

The demand for cat food decreases while the supply increases. The equilibrium price of cat food ________, and the equilibrium quantity ________

A) does not change; increases B) rises; decreases C) falls; perhaps changes but we can't say if it increases, decreases, or stays the same D) rises; perhaps changes but we can't say if it increases, decreases, or stays the same E) falls; increases

Looking at their ratio of debt to GDP, which following five countries should be expected to face serious economic trouble in the future?

a. Fredonia: 40 percent b. Syldavia: 70 percent c. Borduria: 120 percent d. Ruritania: 20 percent e. Dystopia: 100 percent.