In the short run, a monopolistically competitive firm will A. select the rate of output where price equals marginal cost. B. make a profit. C. not advertise because the effects will not be realized until the long run. D. select the rate of output where marginal revenue equals marginal cost.

Suppose the government enacts a stimulus program composed of $600 billion of new government spending and $300 billion of tax cuts for an economy currently producing a gdp of $14 comma 000 billion. if all of the new spending occurs in the current year and the government expenditure multiplier is 1.5, the expenditure portion of the stimulus package will add nothing percentage points of extra growth to the economy. (round your response to two decimal places.)