The data in the tables below suggest that production in:
Autos and chemicals are in million of units in the following production possibilities tables:
A. Germany is subject to increasing opportunity costs and the United States to constant opportunity costs
B. The United States is subject to increasing opportunity costs and Germany to constant opportunity costs
C. Both Germany and the United States are subject to constant opportunity costs
D. Both Germany and the United States are subject to increasing opportunity costs
C. Both Germany and the United States are subject to constant opportunity costs
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What is mostly likely to happen if decreased government borrowing drives down real interest rates in the United States?
What will be an ideal response?
In the production possibilities frontier depicted in the figure above, which of the following combinations of hats and bananas is inefficient?
A) 4 million pounds of bananas and 4 million hats B) 2 million pounds of bananas and 5 million hats C) 0 pounds of bananas and 6 million hats D) 1 million pounds of bananas and 3 million hats
Long-run cost functions are estimated using
A) time-series regression analysis. B) cross-sectional regression analysis. C) cost accounting data. D) None of the above
When the economy is experiencing a negative output gap:
A. some people and some capital are unemployed. B. the economy may be in a recession. C. there is little inflationary pressure due to low demand. D. All of these statements are true.