The expected inflation rate is the inflation rate that people forecast and use to help set

Exports decrease by $500 billion, investment increases by $300 billion, and government expenditure increases by $200 billion. As a result, autonomous expenditures ________ , total expenditures ________ , and equilibrium real GDP ________

A) increases by $3500 billion; increases; increases by more than $300 billion B) decreases by $200 billion; decreases; decreases by more than $200 billion C) increases by $500 billion; increases; increases by more than $500 billion D) decreases by $300 billion; decreases; decreases by more than $300 billion E) is unchanged; is unchanged; is unchanged

In the short-run under perfect competition, which of the following is always true?

a. Economic profit earned by firms can be negative, zero, or positive. b. Economic profit earned by firms is always zero. c. Economic profit earned by firms can be zero or positive, but not negative. d. Economic profit earned by firms is positive, but not zero or negative.