The figure above shows the market for private elementary school education in Chicago. There is no external cost of private elementary education. If the government does not intervene in this market, the equilibrium price of private education is

The United States became a net debtor because

A) it ran consistently large current account deficits. B) it ran consistently large current account surpluses. C) it lent a lot to people in foreign countries. D) it provided much foreign aid to other countries.

According to the misperceptions theory, the amount by which producers increase their output when the general price level rises depends on

A) the slope of the aggregate demand curve. B) the slope of the long-run aggregate supply curve. C) the size of the Solow residual. D) how much they think their relative prices have increased.