In the monetary intertemporal model, the long-run effects of an increase in the level of money include

A paint firm has just announced that it will be building a new plant in a small town that is currently experiencing a high level of unemployment. The new plant will create 500 new jobs in the area and will occupy unused land at the edge of town

The plant will also dump some harmful chemicals into the town's river. From an economic standpoint this dumping of chemicals A) is unimportant since the firm is reducing the unemployment in the region. B) creates a negative externality. C) is the production of a public good. D) creates a positive externality.

Joe Spengler, now age 54, lost his job as a shipbuilder during the recession of 1991 . His plant never reopened, and he has very specialized skills that are no longer in demand. Joe's unemployment is best classified as

a. cyclical b. structural c. discouraged d. frictional e. voluntary