The Phillips curve represents a direct relationship between the inflation rate and the unemployment rate

The cost that society incurs in cleaning up pollution caused by a firm's production is the same as the __________ associated with that production

a. negative externality b. positive externality c. private marginal cost d. intersection of the demand and supply curves e. price

Answer the following questions true (T) or false (F)

1. In reality, the Fed is unable to use monetary policy to keep real GDP exactly at its potential level. 2. The Fed can use contractionary monetary policy in an attempt to keep inflation from increasing. 3. The Fed can use expansionary monetary policy to lower interest rates to stimulate aggregate demand.