The most volatile part of wealth is:

The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 

A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A

When electricity buyers and electric utility companies trade with one another, the electric utilities may generate electricity with a coal-burning power plant. This produces sulfur dioxide, nitrogen dioxide, particulates, and other air pollutants, which affect people who may not be among the buyers or sellers. This phenomenon is known as

A. mitigation. B. a negative externality. C. resource overuse. D. excess supply.