GDP ignores the external costs of environmental degradation, and ignores the depletion of natural resources such as biodiversity, marine fishery stocks, groundwater basins, and soil fertility

A farmer owns 10 acres of land on which both soybean and corn can be grown. If he increases the production of corn, _____

a. the output of soybean must fall b. the demand curve for soybean must shift leftward c. the demand curve for corn must shift rightward d. the output of soybean must increase too

Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.

A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower