Which of the following assumptions is crucial to the classical macroeconomic model's assertion that the economy has built-in forces that automatically eliminate unemployment and quickly move the economy to its potential level of real GDP?

Which of the following is correct? The supply curve will shift when

A) income, preferences, or the number of suppliers change. B) income, preferences, or the number of buyers change. C) income, preferences, or production technology changes. D) the number of sellers and the number of buyers change. E) production technology and input prices change.

A situation in which a benefit or a cost associated with an economic activity spills over to third parties is called

A) a public good. B) a merit good. C) an externality. D) the free-rider problem.