In competitive markets where firms are observed to be exiting the market, the firms that remain will obtain economic profits in the long run

If expectations are adaptive, how will the economy adjust to a new long-run equilibrium in response to expansionary monetary policy? Support your answer with a graph of the Phillips curve

What will be an ideal response?

Under what circumstances will the economic rent earned by a factor of production always be zero?

A) Infinitely inelastic supply curve B) Infinitely elastic supply curve C) Somewhat inelastic supply curve D) Elastic demand curve