The following figure shows the demand and cost curves facing a firm with market power in the short run.The firm earns profits of

If aggregate planned expenditures are less than real GDP, then

A) inventories increase above their planned levels and businesses increase their production. B) unplanned inventory changes equal zero. C) inventories decrease below their planned levels and businesses increase their production. D) inventories increase above their planned levels and businesses decrease their production. E) there is no equilibrium level of real GDP.

One result of the agriculture price supports cited in the text is that

A) sometimes surplus food is given away. B) food shortages result in most cases. C) small farms receive most of the benefits. D) none of the above.