In the long run, all costs are variable

Suppose the inflation rate target is "0" and the long run federal funds target is also "0." Calculate the federal funds rate if the current inflation rate is 5% and real output is 4.5% below trend output

A) 2.25% B) 5.25% C) 0.5% D) 0.25%

Which of the following goods are not likely to be sold in monopolistically competitive markets?

a. jeans b. books c. tap water d. clocks