A fiscal policy action to close an expansionary gap is to:

Which of the following is TRUE regarding the long run for a firm in monopolistic competition?

A) P = MC = ATC B) P = MC = MR C) ATC = MC = MR D) P = ATC

Economists who believe that market economies are inherently unstable argue that the crisis of 2008 was primarily the result of

a. the expansionary policies of the Fed that caused the housing boom. b. housing regulations that undermined sound lending practices. c. the leveraged lending practices of banks and the fear that retarded both consumption and investment in the latter half of 2008. d. persistently high interest rates during the decade leading up to the crisis.