According to supply-side economics, changes in marginal tax rates will have which of the following effects?

Excess capacity typically occurs

a. in the short run in perfect competition b. in the short run in monopolistic competition c. in long-run equilibrium in perfect competition d. in long-run equilibrium in monopolistic competition e. usually in markets experiencing an increase in demand

A simultaneous rise in both aggregate demand and short-run aggregate supply will definitely

A) raise the price level, but there is not enough information provided to know how Real GDP will change. B) lower Real GDP, but there is not enough information provided to know how the price level will change. C) raise the price level and Real GDP. D) raise Real GDP, but there is not enough information provided to know how the price level will change. E) raise the price level and lower Real GDP.