On the basis of the rational expectations theory we can say that, the aggregate supply in an economy depends on what sort of macroeconomic course policy makers are expected to pursue

A strategy called "limit pricing" sets the price

A) below the competitive level. B) at the monopoly level. C) at the lowest level that inflicts a loss on the entrant. D) at the highest level that inflicts a loss on the entrant.

If money wages increase, the most likely result is a(n)

a. increase in aggregate supply. b. decrease in aggregate supply. c. steeper aggregate supply curve. d. flatter aggregate supply curve.