The design of tax policy is one of the responsibilities of economists who work at the

A change in the price level ________ the AE curve and ________ the AD curve

A) results in a movement along; shifts B) shifts; results in a movement along C) shifts; shifts D) has no effect on; results in a movement along E) results in a movement along; results in a movement along

If a positive externality is associated with the purchase of smoke detectors:

A. the marginal social benefit of smoke detectors exceeds their price. B. more than the efficient quantity of smoke detectors will be sold. C. the marginal social benefit of smoke detectors equals their price. D. the marginal social benefit of smoke detectors is zero.