Compare changes in the price level for a recession resulting from a shift in aggregate demand to that of a recession resulting from a shift in short run aggregate supply

An increase in unemployment benefits is likely to: a. reduce a person's incentive to look for work

b. reduce the opportunity cost of remaining employed. c. provide a better safety net for employed families. d. decrease the tax imposed on consumers. e. increase the need to accept the first job available after becoming unemployed.

You are the mayor of your home town, and one day you arrive at city hall to find angry voters demonstrating against you. They are mad because your office created a garbage-collection monopoly by awarding only one company a permit to collect garbage in

your town. The voters claim that the company is overcharging and providing poor service. They want you to do something that will lower rates and improve service. You call your staff economist, who presents evidence that there are substantial increasing economies of scale to garbage collection. What are your options if you are interested in efficiency?