If consumers suddenly have a greater desire for energy drinks, the price of energy drinks will likely ________ and producers will ________ production

Refer to Figure 27-5. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, and no fiscal or monetary policy is pursued, then at point B

A) the economy is above full employment. B) firms are operating below capacity. C) there is pressure on wages and prices to rise. D) income and profits are rising. E) the unemployment rate is very low.

Economist David Ricardo argued that rent

a. is unethical b. would be higher if the country opened its doors to international trade c. determines the value of the goods produced with the asset d. depends on price and not, as commonly thought, price depends on rent e. can only be earned on land