Compared to Chile (since 1973), Argentine policy has been
a. more favorable to private enterprise
b. more monetarist
c. more constant
d. more successful in macroeconomic terms
e. none of the above
E
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The aggregate supply curve is a(n) ________ curve because it represents the relationship between price level and the quantity of real GDP supplied, two items that are ________ correlated
A) upward-sloping; positively B) vertical; not C) upward-sloping; negatively D) downward-sloping; negatively E) downward-sloping; positively
Suppose a chemical plant regularly dumps chemicals into a river that must be cleaned up before farmers located downstream can use the water on their crops
Dumping the chemicals into the river saves the chemical plant $750,000 in yearly disposal costs and cleaning the water costs farmers $825,000 each year. Explain what the benevolent social planner would like to see happen in this case.