What are the external costs and external benefits associated with cell phone usage in automobiles?
The external costs associated with cellular phone usage may include a higher incidence of traffic accidents. Not only are the individuals involved in the accident bearing additional costs, but so also are other insured drivers who now have to pay higher insurance rates. External benefits could include the ability to report an accident so that help can reach victims more quickly, and so that traffic reporters can advise motorists to avoid a particular area.
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Workers expect inflation to rise from 3% to 5% next year. As a result, this should
A) move the economy down along a stationary short-run aggregate supply curve. B) move the economy up along a stationary short-run aggregate supply curve. C) shift the short-run aggregate supply curve to the left. D) shift the short-run aggregate supply curve to the right.
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting downward C. Aggregate demand shifting rightward D. Aggregate demand shifting leftward