Author Question: A positive externality will cause a market to produce: a. more than the efficient equilibrium ... (Read 94 times)

pepyto · **on:** Jun 30, 2018

A positive externality will cause a market to produce:
a. more than the efficient equilibrium output level.
b. iless than the efficient equilibrium output level.
c. the efficient equilibrium output level.
d. None of the above.

Question 2

If people have adaptive expectations, the Phillips curve model implies that whenever the actual rate of inflation is higher than the expected rate of inflation:
a. unemployment will exceed its natural rate.
b. unemployment will be less than its natural rate.
c. unemployment will increase.
d. unemployment will decrease.