When external costs are present and government imposes a tax equal to the external marginal cost, then efficiency can be achieved
Indicate whether the statement is true or false
TRUE
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
An effluent fee
a. is a dollar value added to the price of a pollution-generating product b. is a command-and-control instrument c. can be based upon the degree of harm linked to the contaminant being released d. cannot be linked to the quantity of pollution released
Investment spending ____ during a recession, and _____ during an expansion
Fill in the blank(s) with the appropriate word(s).
A union can achieve higher wages without accepting lower levels of employment of members by
A) striking. B) increasing the productivity of its members. C) increasing the amounts of imports. D) increasing the difficulty of its apprenticeship program.