During recessions, unemployment ________ while the budget deficit as a percentage of GDP ________

The Keynesian model of aggregate demand includes:

I. government purchases and taxes. II. consumer spending and investment spending. III. exports plus imports. a. I b. I and II c. II and III d. I, II, and III

A negative externality is said to exist if

A. the social costs exceed the private costs. B. the private marginal cost exceeds the private marginal benefit. C. the producer and the consumer surplus for a particular good are not equal. D. a tax imposed on the production of a particular good results in a deadweight loss.