Suppose a Pigovian tax is imposed on a market that is characterized by one or more externalities. Is this a command-and-control policy or is it a market-based policy?

What is the shape of the long-run aggregate supply curve? Why?

What will be an ideal response?

When prices are rising, which of the following will be true?

A) The real interest rate will be lower than the nominal interest rate. B) The real interest rate will be negative. C) The real interest rate will be higher than the nominal interest rate. D) The nominal interest rate will be negative.