Explain the concept of an externality and identify a good that creates either a positive or negative externality. What is the likely market Failure that results in this market? In your own words. describe the concept of Real Gross Domestic Product. Why is Real IGDP a better measure to compare output across years than Nominal GDP? What is the technical definition of a recession? What is inflation? Why has inflation been historically dangerous for economics? Assume the U.5. economy is currently in a recession. Describe the appropriate monetary policy response for the Federal Reserve Bank. Characterize the effect on the money supply and the interest rate. Assume the U.S. is currently concerned about inflation. Describe the appropriate monetary policy response for the Federal Reserve Bank. Characterize the effect on the money supply and the interest rate. Explain the concept of fiscal policy. How can the government influence GDP through changes in taxes and government spending? The LLS. agricultural sector relies heavily on international trade. Describe two common trade barriers; tariffs and import quotas, and how these policies are used to restrict trade between countries