In the short run, if a perfectly competitive firm is producing at a price below average total cost, its economic profit is:

The interest rate is 5 percent. How does $500 to be received a year from today compare in value to $500 right now?

What will be an ideal response?

The political process by which fiscal policy is made

A) is relatively rapid, contributing to the effectiveness of fiscal policy. B) requires only that the president approve changes to the budget, a decision that takes several months. C) is efficient in reaching a decision within a year. D) is slow and results in a long time lag for fiscal policy.