The market demand curve for a pure public good shows the total value that all individuals place on each unit of the good.

Which of the following statements is true of creative destruction?

A) Creative destruction is encouraged in economies with extractive institutions. B) Creative destruction is a phenomenon that was mostly prevalent before the year 1800. C) Creative destruction is generally bad for an economy. D) Creative destruction creates losses for some economic agents and benefits for others.

Which of the following models relies on emphasizing the importance of sticky wages and prices?

A) the new classical model B) the new Keynesian model C) the real business cycle model D) the monetarist model