Profit-related income does not play any crucial role in the workings of a market system

Suppose a perfectly competitive market is in short-run equilibrium. Firms that are incurring a ________ economic loss ________

A) persistent; increase their output to increase their profit B) temporary; exit the industry C) temporary; decrease their production but definitely stay open D) persistent; exit the industry and shift the market supply curve leftward E) persistent; exit the industry and shift the market supply curve rightward

An annually balanced budget: a. is the surest path to economic stability

b. is required by the U.S. Constitution. c. dampens cyclical swings by decreasing government spending during expansions and increasing it during recessions. d. accentuates cyclical swings by increasing government spending during expansions and reducing it during recessions. e. is a goal that has only been achieved twice in the past 5 years.