In the first half of 2008, food and energy costs in the United States increased. At the same time, the financial crisis slowed production. As a result, economists warned that the economy would
A) suffer an inflationary gap.
B) see a decrease in aggregate demand and an increase in long-run aggregate supply.
C) experience stagflation.
D) see an increase in potential GDP.
C
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Which event in business regulatory history permitted government intervention in industry affairs?
(a) The case of Munn v Illinois (1877) (b) The Sherman Act of 1890 (c) The case of Nebbia v New York (1934) (d) The creation of the Interstate Commerce Commission via the Interstate Commerce Act of 1887
A lighthouse is a public good
A) because it doesn't cost any more to light the way for 105 ships than it does to light the way for 104 ships, but for no other reason. B) because there is no way to prevent those who haven't contributed to the lighthouse from seeing better because of it, but for no other reason. C) because the government produces it, and for no other reason. D) for the reasons in A and B together. E) for the reasons in A, B, and C together.