Joe's budget constraint equals 500 = 2F + 100S, where $500 is Joe's income, $2 is the price of food (F) and $100 is the price of shelter (S). How much food can Joe buy if he buys one unit of shelter?

Which of the following statements is true?

a. Whenever marginal cost is below average total cost, marginal cost is decreasing. b. Whenever marginal cost is above average total cost, marginal cost is decreasing. c. Whenever marginal cost is above average total cost, average total cost is increasing. d. When marginal cost equals average total cost, marginal cost is minimized

According to the rational expectation view, does the government have the ability to control the level of real output and unemployment? a. Only in the SR and only if it makes unexpected changes in aggregate demand

b. Only in the SR and only if it announces plans well in advance, so that expectations are affected. c. Only in the LR and only if it shifts AS instead of AD. d. Only in the LR and only if it uses monetary policy instead of fiscal policy.