When a perfectly competitive firm is in long-run equilibrium, it and all other firms are on the lowest point of their average cost curves

Refer to Figure 28-2. Suppose the economy is at point B in the figure above. Which of the following is true?

A) The economy is producing at potential GDP. B) The expected rate of inflation is 3%. C) The natural rate of unemployment is 3.8%. D) The current unemployment rate is 5%. E) Expected inflation and actual inflation are the same.

The price of a good is

A) always equal to the cost of producing the good. B) never affected by the number of buyers and sellers. C) usually determined in a market. D) None of the above.