Use the following figure to answer the next question. Total fixed cost at output level Q2 is measured by the vertical distance

The 2008-2009 recession must have been a result of ________ because otherwise the combination of the ________ cannot be explained

A) a decrease in AD and an increase in AS; rise in the price level and the decrease in real GDP B) a decrease in AD and AS; rise in the price level and the decrease in real GDP C) a decrease in AD and AS; decrease in the price level and the decrease in real GDP D) a decrease in AD and an increase in AS; fall in the price level and the decrease in real GDP E) an increase in AD and AS; rise in the price level and the decrease in real GDP

If the price of a good rises by 10% and the quantity purchased falls by 5%, then demand for the good is ________ and total spending on the good will ________

A) elastic; increase B) inelastic; increase C) elastic; decrease D) me and so inelastic; decrease