Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.

Pumpkins are grown in New Mexico with the aid of fertilizer. Hence, fertilizer is a partial answer to which of the three economic questions?

What will be an ideal response?

How does the social problem of positive externalities differ from the problem created by negative externalities?

A) Positive externalities can create free-rider problems; negative externalities do not. B) Positive externalities are created by altruistic people; negative externalities are not. C) Negative externalities can create free-rider problems; positive externalities do not. D) Negative externalities are created by selfish people; positive externalities are not. E) Trick question: neither positive nor negative externalities create a social problem.