Refer to the table, in which investment is in billions. Suppose the Fed reduces the interest rate from 6 to 5 percent at a time when the investment demand declines from that shown by columns (1) and (2) to that shown by columns (1) and (3). As a result of these two occurrences, investment will:

A change that shifted the long-run aggregate supply curve to the right would also shift the short-run aggregate supply curve to the right

a. True b. False Indicate whether the statement is true or false

In a world of perfect knowledge and communication, competitive markets, and no uncertainty,

a. there would be neither economic profits nor economic losses. b. economic profits would exist, but losses would be eliminated. c. economic profits and losses would exist to a greater degree than presently is the case. d. there would be economic profits; there is not enough information to comment on economic losses.