An unexpected fall in the Producer Price Index should send bond prices __________ and stock prices __________

Refer to the below graph. A monopsonist will set the wage at:

A. Wc

B. Wu

C. Wm

D. Cannot be determined

The intermediate zone in the middle of the short-run aggregate supply curve is upward sloping, so a rise in aggregate demand will cause higher output and price level, while a fall in aggregate demand will lead to ______ output and price level.

a. higher b. lower c. no change in d. surpluses in