Keynesian picture the aggregate demand curve as rather __________, partly because interest rates may be __________ to changes in the real money supply

When unplanned inventory changes are positive, GDP is current at its equilibrium level

a. True b. False

Why don't competitive markets do a good job providing public goods?

a. Because public goods generate negative externalities, and pollution taxes reduce the incentive for firms to supply public goods. b. Because it is difficult to exclude people from gaining benefits from public goods without paying for them, and so market demand does not reflect the benefits to society from the public good. c. Because firms cannot produce enough to satisfy market demand. d. Because people do not receive benefits from public goods.