The production function of a firm illustrates the relationship between the amount of labor hired and output

In the early 1980s, U.S. economic policy was directed toward reducing inflation. What would you have expected to observe during this short period of time?

a. Inflation fell and unemployment fell. b. Inflation and unemployment were both unaffected. c. Inflation fell and unemployment increased. d. Inflation fell and unemployment was unchanged.

If the production of a good generates a positive externality, then:

A. there will be deadweight loss at the market equilibrium quantity. B. production of the good is harmful. C. total economic surplus will be maximized at the market equilibrium quantity. D. the government should tax producers of the good.