A firm dumps dioxin in a river, thereby severely polluting the river. The cost of the water pollution is i. zero for the firm. ii. an external cost. iii. part of the marginal social cost

What distinguishes the short run from the long run?

A. In the short run, some inputs are fixed, and in the long run, some inputs are fixed. B. In the short run, all inputs are variable, and in the long run, all inputs are variable. C. In the short run, all inputs are variable, while in the long run, some inputs are fixed. D. In the short run, some inputs are fixed, while in the long run, all inputs are variable.

Fiscal expansion under fixed exchange rates will have what temporary effect?

A) the money supply will decrease. B) output will decrease. C) the exchange rate will increase. D) the exchange rate will decrease. E) there will be no effect.