The situation in which one firm can produce the total output of the market at lower cost than several firms is called a

If Y>C+I+G but Md= Ms, then

a. interest rates must rise and output must fall. b. both interest rates and output must fall. c. interest rates must fall and output must rise. d. both interest rates and output must rise. e. none of the above.

Suppose the typical consumer only purchases food and clothing, and her utility can be expressed as U = F ? C. Currently, food costs $5 per unit and clothing costs $2 per unit. Her income is $70

If the price of food increases to $6, compare the resulting Laspeyres price index with a true cost of living index.