Whenever there are negative or positive externalities, the Coase theorem suggests that it is economically efficient for the government to intervene to resolve the externality problem.

Which prices are used to measure goods and services in calculating the nominal GDP?

A) average prices B) past years prices C) current prices D) projected prices

Investment spending is procyclical. In the short run, are changes in investment affected more by changes in the expected marginal product of capital, or by changes in the user cost of capital?

What will be an ideal response?