Refer to the above graph of the representative firm in monopolistic competition. The long-run equilibrium price and output for this firm will be:

When the Fed purchases government bonds it _____ reserves and ____ the money supply.

A) decreases; increases B) increases; decreases C) decreases; decreases D) increases; increases

What is a shortcoming of price control legislation?

a. Price controls lower the quantity supplied. b. Price controls create surpluses. c. Price controls decrease the quantity demanded. d. All of the above are shortcomings of price controls.