Author Question: The free-rider problem is the absence of an incentive for A) firms to produce public goods. B) ... (Read 155 times)

SO00

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The free-rider problem is the absence of an incentive for
 
  A) firms to produce public goods.
  B) people to use common resources.
  C) people to pay for what they consume.
  D) people to vote.

Question 2

In the aggregate demand-aggregate supply framework, how does an increase in the price level affect potential GDP?
 
  What will be an ideal response?



laurnthompson

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Answer to Question 1

C

Answer to Question 2

An increase in the price level has no effect on potential GDP. Potential GDP is independent of the price level, so increases or decreases in the price level have no effect on potential GDP.



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