In each scenario below, use the ECONOMIC INDICATORS to determine whether the aggregate economy is in a RECESSIONARY GAP, an INFLATIONARY GAP, or at LONG-RUN EQUILIBRIUM. Then, list whether the EXPANSIONARY or CONTRACTIONARY policy is appropriate to fix the economy, or if NO POLICY is needed. Lastly, EXPLAIN why that course of action is appropriate. THE AMERICAN ECONOMY IS EXPERIENCING AN UNEMPLOYMENT RATE OF 8.9%. FISCAL PolicyUSINGWHAT CONDITION IS THE ECONOMY IN? LIST THE FISCAL POLICY NEEDED (IF ANY) AND EXPLAIN WHY IT IS APPROPRIATE!

Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact thatmr=mc at the optimal quantity for each firm. furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium isless than the minimum average total cost. true or false: this indicates that there is a markup on marginal cost in the market for engines. true false monopolistic competition may also be socially inefficient because there are too many or too few firms in the market. the presence of the externality implies that there is too little entry of new firms in the market.