Answer and Explanation:
profit will increase to zero
.
Currently the firm is incurring loss as price is less than ATC. In the long run firms will exit.
Answer:
3) AD shifts right and output would decrease.
Explanation:
Aggregate demand (AD) is the total number of goods demanded in an economy in a period of time.
If Congress decides to cut the National debt (or accumulated debt of the government) by half, this will make interest rates lower and will encourage investment from the private sector.
The shifting to the right occurs when these components; consumption spending and investment spending increases due to cut in National debt.
The AD curve will shift back to the left as these components decreases.
So many! Failing is the main one and losing everything
