When a regulator allows a monopolist to set its price equal to long-run average cost, the regulator is practicing

The short-run Phillips curve will not shift unless there is

A) an increase in inflation that is unanticipated. B) a decrease in inflation that is unanticipated. C) a change in inflation expectations. D) an increase in the unemployment rate.

A financial crisis occurs when an increase in asymmetric information from a disruption in the financial system

A) causes severe adverse selection and moral hazard problems that make financial markets incapable of channeling funds efficiently. B) allows for a more efficient use of funds. C) increases economic activity. D) reduces uncertainty in the economy and increases market efficiency.