The economy is initially in long-run equilibrium. Expectations are adaptive, prices and wages are flexible, and there is an unanticipated increase in aggregate demand. In the short run, the price level will be __________ than it was in long-run equilibrium and Real GDP will be __________ than it was in long-run equilibrium

The interest rate the Federal Reserve charges a bank when it borrows reserves from the Fed is called the

A) federal funds rate. B) prime rate. C) market interest rate. D) discount rate. E) borrowing rate.

The Loma Linda City Council made it official in June 2008, passing the most restrictive smoking ordinance yet in the Inland area. Dr. Linda Ferry, who counsels veterans on quitting smoking at Jerry L

Pettis Memorial VA Medical Center, said that the smoking ordinance would protect children from exposure to secondhand smoke and discourage teenagers and adults from taking up smoking. What is TRUE about this situation? A) Marginal external costs are negative. B) Marginal external benefits are positive. C) Marginal external costs are positive. D) Marginal external benefits are negative.