In monopolistic competition, there are ________ barriers to entry and so firms in monopolistic competition ________ earn an economic profit in the long run

The use of government spending and taxation to make changes in the level of national income is known as fiscal policy

Indicate whether the statement is true or false

The Federal Reserve System

a. was created by and is owned by the government b. pursues independent fiscal policy at the behest of Congress c. monitors prices but does not have the authority to act to curb inflation when it emerges d. pursues an independent monetary policy that can conflict with the government's fiscal policy e. only acts to lower taxes and increase spending when there are recessionary tendencies in the economy