Q1. Assume the Federal Reserve announced to it would pursue contraction monetary policy to reduce the inflation rate. Would the following conditions make the ensuing recession more or less severe? Elucidate.

Q2. Bill has installed security lighting on his property. These lights give him a private benefit. But the lighting also confers some positive external benefits for his neighbors since the lights keep burglars away from their property as well.Electricity also has negative external effects. Generating electricity usually cause pollution. Adjust the benefit or cost curve (or both) to illustrate the private also social benefits also costs in the market for electricity.