If government were to regulate a monopolistically competitive market by setting a single price, a consequence would be:

A wave of bank failures in the United States

A) occurred in the 1970s. B) occurred from the early 1980s to the early 1990s. C) occurred from late 1980s to the mid 1990s. D) has been ongoing since the late 1980s.

Which of the following does the long-run Phillips curve tell us?

a. That output can be below potential in the long run b. That the unemployment rate can take on any value in the long run c. That output can be maintained above potential in the long run d. That unemployment will return to the natural rate in the long run e. That the inflation rate cannot rise above 10 percent in the long run