When there is high and variable inflation, markets will adjust toward their equilibrium prices and quantities more erratically and slowly. Additionally, many individual markets will experience a _________ chance of surpluses and shortages.

An increase in the expected future marginal product of capital would cause the IS curve to

A) shift up and to the right. B) shift down and to the left. C) remain unchanged. D) remain unchanged if firms face borrowing constraints; otherwise, shift down and to the left.

When there is an external benefit, the unregulated market

A) overproduces the good or service. B) underproduces the good or service. C) reaches the most efficient solution. D) maximizes public welfare.