Refer to Figure 13-11. What is the monopolistic competitor's profit maximizing price?

Along a short-run Phillips curve, the

A) long-run cost of lower inflation is higher unemployment. B) short-run cost of lower unemployment is higher inflation. C) short-run cost of lower inflation is higher interest rates. D) short-run cost of higher inflation is a higher real interest rate. E) short-run benefit of lower unemployment is lower inflation.

From the viewpoint of the entire economy, the cost of government is

a. equal to the amount of taxes collected. b. greater than the amount of taxes collected. c. less than the amount of taxes collected. d. equal to the level of government expenditures.