If the government overcorrected in a situation of external costs
a. More than the efficient amount of the good would end up being produced.
b. Less than the efficient amount of the good would end up being produced.
c. It would result in a welfare cost in that market

Refer to the information provided in Figure 32.2 below to answer the question(s) that follow. Figure 32.2Refer to Figure 32.2. According to the monetarists, a recession can be caused when

A. AS1 shifts to the left. B. AD1 shifts to the left. C. LRAS shifts to the left. D. AD1 shifts to the right.

The market demand curve in a perfectly competitive industry is horizontal, while the demand curve faced by an individual perfectly competitive firm is downward sloping

a. True b. False Indicate whether the statement is true or false