Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.

Quotas are generally against the law and are only used when mandated by a court to remedy long-standing discrimination by a particular entity

Indicate whether the statement is true or false

All firms maximize profits by producing an output level where marginal revenue equals marginal cost; for firms operating in perfectly competitive industries, maximizing profits also means producing an output level where price equals marginal cost

a. True b. False Indicate whether the statement is true or false