When electricity buyers and electric utility companies trade with one another, the electric utilities may generate electricity with a coal-burning power plant. This produces sulfur dioxide, nitrogen dioxide, particulates, and other air pollutants, which affect people who may not be among the buyers or sellers. This phenomenon is known as

If real GDP per person is above the subsistence level then, according to classical growth theory,

A) the population will increase. B) the standard of living will continue to improve. C) the population will decrease. D) labor productivity will increase. E) more technological advances occur.

The economy is initially in long-run equilibrium. The AD curve shifts to the right and the price level rises. Assuming that the economy is self-regulating, the SRAS curve will shift to the left and the price level will rise even further. If the price level now remains constant, what have we witnessed?

A) one-shot demand-induced inflation B) continued demand-induced inflation C) one-shot supply-induced inflation D) one-shot inflation that was partly demand-induced and partly supply-induced E) continued supply-side inflation