One problem facing public goods is the ________ ________ problem

Suppose the economy currently has some underutilized resources. The Fed engages in expansionary monetary policy. The impact of expansionary monetary policy will be to

A) increase aggregate demand, increase prices and increase real GDP. B) increase short-run aggregate supply, decrease in prices and decrease in real GDP. C) increase short-run aggregate supply, decrease prices and increase real GDP. D) increase aggregate demand, increase prices and decrease real GDP.

Special interest groups (such as doctors, teachers, lawyers, health insurance companies, the automobile industry and others) can best be characterized by which of the following statements?

(a) They are constantly working the government to seek rents from policy decisions. (b) They are resistant to change in governmental policies that benefit them at the expense of others. (c) They help push through federal policies that result in technological backwardness, low productivity and less overall economic growth. (d) They can be characterized by all of the above.