A marginal external cost is the cost of producing an additional unit of a good that falls on the producer

The efficient output level of a public good occurs where the

A) greatest number of free riders occurs. B) marginal cost of producing the last unit is equal to the marginal benefit realized by consumers. C) marginal cost of production is minimized. D) total cost of production is affordable.

The Keynesian model agrees with monetarists and new classical models about the fact that

a. changes in the money supply drive most changes in aggregate demand. b. aggregate supply is upward sloping because of differences between actual and expected price levels. c. changes in aggregate demand drive business cycles. d. Both b and c e. None of the above