When monetary and fiscal policymakers expand aggregate demand, which of the following costs is incurred in the short run? a. The price level increases more rapidly. b. The natural rate of unemployment increases. c. Short-run aggregate supply decreases. d. The money supply increases less rapidly.

An increase in the market price of men's haircuts, from $16 per haircut to $26 per haircut, initially causes a local barbershop to have its employees work overtime to increase the number of daily haircuts provided from 20 to 25. when the $26 market price remains unchanged for several weeks and all other things remain equal as well, the barbershop hires additional employees and provides 40 haircuts per day. what is the short-run price elasticity of supply? nothing (your answer should have two decimal places.) what is the long-run price elasticity of supply? nothing (your answer should have two decimal places.)