Suppose you borrow $500 from your bank to pay for a guitar. This is an example of

Because economic profits are eliminated in the long run in monopolistic competition, to earn an economic profit firms continuously

A) shut down. B) exit the industry. C) innovate and develop new products. D) declare bankruptcy. E) decrease their costs by decreasing their selling costs.

An economy that is operating below its full-employment capacity is experiencing a(n):

A. tax-induced recession. B. recessionary gap. C. inflationary gap. D. market correction.