In the above figure, the short-run equilibrium is at the price level of ________ and real GDP of ________

When government spending exceeds government revenues during a given period of time

A) the national debt must be decreasing. B) a budget surplus exists. C) Congress is obliged to raise taxes. D) a budget deficit exists.

The stockholder-lender conflict generally becomes greater

A) the smaller the firm. B) the larger the firm. C) the more the firm borrows from banks. D) the less the firm borrows from banks.