Refer to the above figure. The market clearing price is

John started going for soccer matches after moving in with a roommate who is a huge fan of soccer. This is an example of a(n) ________

A) moral hazard B) adverse selection C) peer effect D) pecuniary externality

What is the? short-run effect of increased deficit spending on an economy experiencing a recessionary? gap?

a. Aggregate demand will increase, creating an inflationary gap. b. Aggregate demand decreases, and the gap widens. c. Aggregate demand increases and the gap closes. d. None of the above