Initially, a consumer is at an optimum. Then the price of Y increases. Consequently

A shock that could trigger a recession is a

a. large military buildup b. large increase in the price of oil c. sudden unexplained increase in consumption d. new technological breakthrough e. large decrease in the price of oil

Which of the following is an example of a deficiency caused by a regulatory approach to pollution?

a. ignored information provided by market signals b. special interest influence on policies c. lack of accountability by regulators for costs of regulation d. all of the above