A period of very high and accelerating inflation is known as

The self-correcting property of the economy means that output gaps are eventually eliminated by:

A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.

Suits Only, a dry cleaning firm that specializes in cleaning business suits, operates in a perfectly competitive market. Robin Smith, an exceptionally talented manager, has been hired to manage Suits Only. In the dry cleaning business, a manager typically makes a salary of $400 per week. Suits Only faces the long-run average and marginal costs shown in the figure below. In long-run competitive equilibrium, the market price for cleaning a business suit is $4.50.Given the above, the typical dry-cleaning firm has a minimum long-run average cost of cleaning a business suit equal to ________ and the typical dry cleaning firm earns economic profit equal to

________. A. $2, $2.50 per suit cleaned B. $3, $1.50 per suit cleaned C. $4.50, $0 D. $2, $0