A politician blames the Federal Reserve for being "soft on unemployment" and claims that a permanently higher money supply growth rate will lead to a permanent reduction in the unemployment rate. The politician's argument is
a. consistent with the long-run Phillips curve. Further, the long-run Phillips curve implies that such a policy would not increase inflation.
b. consistent with the long-run Phillips curve. However, the long-run Phillips curve implies that such a policy would increase inflation.
c. inconsistent with the long-run Phillips curve. However, the long-run Phillips curve implies that such a policy would not increase inflation.
d. inconsistent with the long-run Phillips curve. Further, the long-run Phillips curve implies that such a policy would increase inflation.
d
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The marginal social benefit from the production of the last unit of a good is $4,800. If the willingness to pay for that unit is $3,900, what is the external benefit from its production?
A) $900 B) $8,700 C) $3,800 D) $4,100
Which of the following is an example of an activity that generates positive externalities
a. driving a car b. producing clothing c. washing your car d. education e. building a bridge