For a typical short-run production function, so long as marginal product is increasing, average product will be increasing as well

When aggregate demand increases,

A) the price level is likely to rise as GDP rises. B) the price level is likely to fall as GDP rises. C) aggregate supply will shift to the right. D) aggregate supply will shift to the left.

In the model of public goods, when the government chooses public goods provision optimally

A) there is no public goods production. B) public goods are provided in an amount equal to private goods. C) the marginal rate of substitution of private goods for public goods equals the marginal rate of transformation. D) GDP is maximized.