An increase in the price level causes a movement down the aggregate demand curve

Producer surplus measures the value between the actual selling price and the profit-maximization price

a. True b. False Indicate whether the statement is true or false

Economists who are in favor of smaller government tend to prefer ________________ when expansionary _______________ policy is needed to raise aggregate demand

A) tax cuts; fiscal B) tax cuts; monetary C) more government spending; fiscal D) more government spending; monetary