According to the text, which of the following is a determinant of macroeconomic performance?

In the United States during the 1970s, the unemployment rate rose from previous years, and the inflation rate increased rapidly. This set of events is best described by saying that the

A) the long-run Phillips curve shifted leftward. B) short-run Phillips curve shifted downward. C) economy moved to a lower point on its short-run Phillips curve but the short-run Phillips curve did not shift. D) short-run Phillips curve shifted upward. E) economy moved to a higher point on its short-run Phillips curve but the short-run Phillips curve did not shift.

The product diversity resulting from monopolistic competition comes at the expense of having:

a. firms that will earn positive profits. b. firms that are too small to maximize profit. c. higher profit than would prevail under perfect competition. d. efficiency in the long run