An increase in the price of a good will lead to an increase in the quantity supplied.

In the above figure, what are the long-run equilibrium price level and real GDP?

A) 130 and $11.5 trillion B) 120 and $11.5 trillion C) 120 and $12 trillion D) 130 and $12 trillion

When natural resources are not traded, or where markets are not allowed to function as well as they can under a system of well-defined property rights, the problems of ____ and ____ are common

a. higher taxes; increased regulation b. waste; scarcity c. inflation; unemployment d. slow growth; fluctuating currency values