Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.

Refer to the accompanying graph. If this firm is a price taker and the price of each unit of output is $9, then at its profit-maximizing level of output, this firm will earn a ________ of ________.

A. loss; $60 B. loss; $300 C. profit; $900 D. profit; $495

M1 is composed of

A) currency held by individuals and businesses, traveler's checks, and checkable deposits owned by individuals and businesses. B) checkable deposits owned by individuals and businesses, saving deposits, and certificates of deposit. C) currency inside of banks, traveler's checks, and government-issued checks. D) traveler's checks, credit cards, and e-cash. E) currency held by individuals and businesses, traveler's checks, and the credit line on credit cards.