A situation in which output decreases while prices increase is often referred to as:

There is a federal budget deficit when

A) the government spends more that it collects in taxes. B) the government spends less that it collects in taxes. C) the government spends the same amount it collects in taxes. D) taxes are too high.

The supply and demand model

a. tries to include as many realistic details as possible in order to provide insights into real-world competitive markets b. uses simplifying assumptions while still providing insights into real-world competitive markets c. uses simplifying assumptions that severely limit its usefulness in practice d. is too complicated to be useful in practice e. is unable to explain price movements in most real-world competitive markets