If this pollution occurs, the market equilibrium with no government intervention extracts ________ natural gas than the efficient quantity and ________ a deadweight loss
A) less; does not create
B) more; does not create
C) less; creates
D) more; creates
D
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In the figure below, draw a short-run Phillips curve and a long-run Phillips curve if the expected inflation rate is 4 percent and the natural unemployment rate is 6 percent
Explain how the two change in the short run if: a. slower growth in aggregate demand causes a recession. b. the inflation rate increases. c. the natural unemployment rate increases.
Games with a negative-negative outcome:
A. must have a noncooperative equilibrium. B. result from players acting in their own self-interest. C. are not necessarily the best outcome for the players involved. D. All of these statements are true.
Refer to the graph shown. In the graph, an inflationary gap exists if the price level is:
A. P0 and the aggregate demand curve is AD0. B. P1 and the aggregate demand curve is AD0. C. P1 and the aggregate demand curve is AD1. D. P0 and the aggregate demand curve is AD1.
Graphically inflation shocks shift the ________ and shocks to potential shift the ________.
A. long-run aggregate supply line; short-run aggregate supply line B. aggregate demand curve; long-run aggregate supply line C. aggregate demand curve; short-run aggregate supply line D. short-run aggregate supply line; long-run aggregate supply line