Answer the question on the basis of the following sequence of events involving fiscal policy: (1) the composite index of leading indicators turns downward for three consecutive months, suggesting the possibility of a recession. (2) economists reach agreement that the economy is moving into a recession. (3) a tax cut is proposed in congress. (4) the tax cut is passed by congress and signed by the president. (5) consumption spending begins to rise, aggregate demand increases, and the economy begins to recover. the administrative lag of fiscal policy is reflected in events

Wo firms, a and b, each currently dump 50 tons of chemicals into the local river. the government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. it costs firm a $100 for each ton of pollution that it eliminates before it reaches the river, and it costs firm b $50 for each ton of pollution that it eliminates before it reaches the river. the government gives each firm 20 pollution permits. government officials are not sure whether to allow the firms to buy or sell the pollution permits to each other. what is the total cost of reducing pollution if firms are not allowed to buy and sell pollution permits from each other? what is the total cost of reducing pollution if the firms are allowed to buy and sell permits from each other? a. $3,000; $1,500 b. $4,500; $3,500 c. $4,500; $4,000 d. $4,500; $2,500