Long-run aggregate supply corresponds to the level of potential output.

Economists normally assume that the goal of a firm is to (i) sell as much of its product as possible. (ii) set the price of the product as high as possible. (iii) maximize profit

a. (i) and (ii) only b. (ii) and (iii) only c. (iii) only d. (i), (ii), and (iii)

In 2007, the Fed engaged in inflation targeting when it lowered the interest rate in anticipation of a recession.

Answer the following statement true (T) or false (F)