The figure above shows the marginal social cost of generating electricity and the marginal private cost. For 4 billion kilowatts, what is the marginal external cost?

The short-run Phillips curve shows only a short-run tradeoff between the unemployment rate and the inflation rate because in the long run the

A) expected inflation rate increases. B) unemployment rate returns to the natural unemployment rate and so there is no long-run tradeoff between the inflation rate and the unemployment rate. C) natural unemployment rate increases. D) inflation rate returns to the natural inflation rate and the unemployment rate returns to the natural unemployment rate. E) inflation rate returns to the natural inflation rate and so there is no long-run tradeoff between the inflation rate and the unemployment rate.

The short-run Phillips curve always intersects the long-run Phillips curve at: a. Zero inflation

b. At an accelerating inflation rate. c. The expected inflation rate. d. The same rate over time.