Refer to Figure 10.3. What quantity will the monopsonist purchase to maximize profit?

If the Fed lowers the federal funds rate, eventually the

A) AS curve shifts rightward, decreasing real GDP and raising the price level. B) AS curve shifts leftward, decreasing real GDP and raising the price level. C) AD curve shifts leftward, decreasing real GDP and raising the price level. D) AD curve shifts leftward, decreasing real GDP and lowering the price level. E) AD curve shifts rightward, increasing real GDP and raising the price level.

Potential GDP focuses on the:

A) long-run supply side of the economy. B) long-run demand side of the economy. C) short-run supply side of the economy. D) short-run demand side of the economy.