This topic contains a solution. Click here to go to the answer

Author Question: The greater the magnitude of the external costs of production, a. The larger is the deadweight loss ... (Read 58 times)

frankwu

  • Hero Member
  • *****
  • Posts: 549
The greater the magnitude of the external costs of production,
 a. The larger is the deadweight loss from overproduction.
 b. The greater would be the optimal pollution tax.
 c. The further the private market solution ignoring those costs would deviate from the socially efficient level of output.
  d. All of the above are true.

Question 2

In the rational expectation model, government control over aggregate demand:
 a. gives it the power to alter real output and employment even when the effects of government policies are expected.
  b. can affect real output in the short-run only if policies are unexpected.
 c. has potential to change long-run real output as long as the aggregate supply curve is vertical.
 d. has highly unpredictable effects on real output in the long run.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

JaynaD87

  • Sr. Member
  • ****
  • Posts: 368
Answer to Question 1

c

Answer to Question 2

b




frankwu

  • Member
  • Posts: 549
Reply 2 on: Jun 30, 2018
:D TYSM


emsimon14

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Gracias!

 

Did you know?

Urine turns bright yellow if larger than normal amounts of certain substances are consumed; one of these substances is asparagus.

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

Most women experience menopause in their 50s. However, in 1994, an Italian woman gave birth to a baby boy when she was 61 years old.

Did you know?

Lower drug doses for elderly patients should be used first, with titrations of the dose as tolerated to prevent unwanted drug-related pharmacodynamic effects.

Did you know?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

For a complete list of videos, visit our video library