A key issue in macroeconomics is why the economy sees . Multiple choice question. business cycle fluctuations rather than slow, smooth growth extensive periods of fast growth low, smooth business cycle growth rather than fluctuations modest fluctuations rather than volatile fluctuations

Which of the following statements is (are) true? i. free entry to a perfectly competitive industry results in the industry's firms earning zero economic profit in the long run, except for the most efficient producers, who may earn economic rent. ii. in a perfectly competitive market, long-run equilibrium is characterized by lmc < p < latc. iii. if a competitive industry is in long-run equilibrium, a decrease in demand causes firms to earn negative profit because the market price will fall below average total cost.