A decrease in demand, accompanied by a simultaneous decrease in supply, will always cause the equilibrium price and quantity of the good to fall

From an initial long-run macroeconomic equilibrium, if the Federal Reserve anticipated that next year aggregate demand would grow significantly faster than long-run aggregate supply, then the Federal Reserve would most likely

A) increase income tax rates. B) decrease income tax rates. C) increase interest rates. D) decrease interest rates.

Suppose you are planning to sell your house. You value your house at $150,000. If you do not hire a realtor, you will be able to sell your house to a buyer whose reservation price is $180,000. If you hire a realtor, you will be able to sell your house to a buyer whose reservation price is $200,000. Assume that the realtor's opportunity cost of negotiating the sale is $10,000. In this case, does using a realtor to sell your house increase total economic surplus?

A. It depends on the sales price of the house, which isn't given in the question. B. No, because you value the house at $150,000 no matter who buys it. C. No, because your house only generated economic surplus when it was first built. D. Yes, using a realtor increases total economic surplus by $10,000.