The CPI was 138 in one year and 146 the following year. Approximately how much did prices rise between the two years?

When there is a positive externality associated with the watering of one's lawn, the free market results in:

a. not enough lawn watering. b. too much lawn watering. c. the socially optimal level of lawn watering. d. people watering each other's lawns. e. government subsidies for lawn watering.

Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:

A. P1 and Y2. B. P2 and Y1. C. P3 and Y1. D. P3 and Y2.