Both the precautionary and asset demand for money are influenced by

A public choice theorist would be most likely to say that government failure is a consequence of the

A) actions of selfish and corrupt politicians. B) rational behavior of the participants of the political process. C) irrational behavior of voters. D) irrational behavior of special interest groups.

Falling output, in the short run, could be due to:

A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.