In the short run, a firm should shut down when

Which has a larger effect on aggregate demand: an increase in government expenditure or an equal sized decrease in taxes? Explain your answer

What will be an ideal response?

Refer to the table below. If demand increased by 100 units at each price level, and the government set a price ceiling of $40, then there will be:

Answer the question based on the following supply and demand schedules in units per week for a product.



A. A shortage
B. A surplus
C. No shortage or surplus
D. Decrease in supply