Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.

The Coase theorem deals with the problem of pollution by

A) giving the government regulatory power over polluters. B) making all polluters stop polluting. C) establishing and enforcing private property rights. D) having the government take over ownership of all polluting processes. E) allowing the government to set the proper emission charge.

American economic history actually is a study of

(a) stable population growth. (b) how colonial Americans worked side-by-side with the natives to produce stable economic growth and wealth for all individuals. (c) how a small, inconsequential economy grew into a giant economy through a series of successes and failures. (d) how people in other countries created problems for colonial Americans of the past as well as U.S. citizens of today.