A negative supply shock in the short run causes
A) unemployment to fall. B) the aggregate supply curve to shift to the left.
C) equilibrium real GDP to rise. D) the price level to fall.
B
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In the factor market, firms ________ and households ________
A) hire land, labor, capital, and entrepreneurship services; purchase goods and services B) supply land, labor, capital, and entrepreneurship services; hire land, labor, capital, and entrepreneurship services C) pay rent, wages, interest, and profit; earn rent, wages, interest, and profit D) purchase goods and services; supply goods and services E) supply goods and services; purchase goods and services
What is a private benefit from consumption? What is a social benefit from consumption? When is the private benefit from consumption equal to the social benefit from consumption?
What will be an ideal response?