A monopolistically competitive firm maximizes profit by producing where marginal revenue equals marginal cost.

Between 1998 and 2001, the federal budget was:

a. never in surplus. b. never in deficit. c. in surplus. d. in surplus about as often as it was in deficit.

Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 

A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C