The aggregate supply curve shows the relationship between the price level and the level of real GDP produced by the nation's economy

The decisions of firms and households are

A) coordinated by but not totally controlled by the government. B) made independently of one another. C) controlled by but not totally coordinated by the government. D) coordinated by markets. E) unexplainable by the circular flow model.

Behavior on the part of the firm that allows it to comply with the letter of the law but violate the spirit reducing the law's effect is

A) asymmetric information. B) creative response. C) the lemons problem. D) only a problem in a monopoly.