A point inside a production possibilities frontier
A) could indicate that some resources are unemployed.
B) is unattainable.
C) is more efficient than points on the production possibilities frontier.
D) implies that too much capital and not enough labor are being used.
A
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Expanding, contracting, and managing the money supply is easier for a central bank under the gold standard
Indicate whether the statement is true or false
A newspaper headline asserts: "Rising Demand Pushes Up Housing Prices." This headline
A) incorrectly implies that the demand for housing can change, whereas in fact only the quantity of housing demanded can change. B) incorrectly implies that the price of housing will rise when demand increases. C) incorrectly implies that more housing will be demanded at higher prices. D) correctly implies that an increase in demand will increase the market clearing price.
The classical long-run aggregate supply curve is
A. vertical at a level of output below potential real GDP. B. upward sloping. C. upward sloping at the level of potential real GDP. D. vertical at a level of potential real GDP.
In economics, the concept of active government intervention in the macroeconomy was first emphasized by
A. supply-side economists. B. rational expectation theorists. C. monetarists. D. John Maynard Keynes.