The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:

Assume that the Federal Reserve replaces the money stock with the interest rate as an intermediate target. Then,

a. the range for the target interest rate would be chosen to hit the inflation rate, unemployment rate, and growth rate of the economy. b. if the Treasury bill rate fell temporarily below the target range, the Open Market Desk would sell securities in the open market until the Treasury bill rate rose to the target range. c. if the Treasury bill rate rose above the target range, the Open Market Desk would purchase Treasury bills or other government securities. d. All of the above

A competitive firm is producing 1,000 units of output with average total cost equal to $35 and marginal cost equal to $40 . Can the market in which this firm operates be in a long-run equilibrium? Briefly explain