Which of the following will cause an increase in aggregate supply?

Suppose that the development of a new type of circuit lowers the costs of production in the microcomputer industry, which is perfectly competitive. The long-run effect will likely be

a. lower price and larger output b. lower price and smaller output c. higher price and larger output d. higher price and smaller output e. no change in price or output

Majority-rule voting, special-interest group effects, rational voter ignorance, bureaucratic inefficiency, and the shortsightedness effect

A. reflect irrational behavior by the general population. B. are public choice theories that explain why the public sector might fail to achieve efficient policies. C. explain why democratic societies need elected officials. D. are the causes of efficient public policy decisions.