If in the short run prices did not respond at all to changes in aggregate demand, the short-run aggregate supply curve would

Assume policy makers in a fixed exchange rate regime decide to peg the exchange rate at a higher level. This is called

A) a devaluation. B) a revaluation. C) a depreciation. D) an appreciation.

To reach an economically efficient output level, the size of an excise tax imposed on a firm generating a negative externality should be:

a. the firm's marginal cost. b. the social marginal cost. c. the difference between the social marginal cost and the firm's marginal cost. d. the sum of the social marginal cost and the firm's marginal cost.