There are two coal-burning electrical utilities-one in tiny, rural Moscow, Idaho, and another in metropolitan Detroit, Michigan-and each produces the same amount of pollution per unit of output. If a permit tax is going to be used to force these firms to internalize pollution costs, the tax levied should be

An inflationary gap is the amount by which

A) total planned production exceeds total planned real expenditures in the long run. B) the short-run equilibrium level of nominal GDP is above the short-run level of real GDP. C) the short-run equilibrium level of nominal GDP is below the short-run level of real GDP. D) the short-run equilibrium level of real GDP is above the full-employment level of real GDP.

In a competitive market, the quantity of a product produced and the price of the product are determined by

a. buyers. b. sellers. c. both buyers and sellers. d. None of the above is correct.