The relative price of a country's goods and services in terms of foreign goods and services is the real exchange rate

Based on the above table, if the current price level is 100 and the unemployment rate is 4 percent, then the

A) expected inflation rate is 8 percent. B) inflation rate is 2.8 percent. C) expected inflation rate is 2.8 percent. D) inflation rate is 8 percent. E) inflation rate is 108 percent.

In the long run, perfectly competitive firms make zero economic profit. This result is due mainly to which of the following assumptions?

A) few buyers and sellers B) unrestricted entry and exit C) firms must act as price takers D) demand for the firm's output is perfectly elastic