In the space provided in the graph above, draw a demand curve, D1, and then draw a second demand curve, D2, that illustrates a decrease in demand.

Average fixed cost is equal to

A) the amount of total cost that does not change as output changes in the short run. B) fixed cost divided by the quantity of output produced. C) average total cost plus average variable cost. D) fixed cost multiplied by the quantity of output produced.

If the real interest rate is 6 percent and the price level is falling at a rate of 2 percent, what is the nominal interest rate?

a. 4 percent b. 6 percent c. 8 percent d. 10 percent