If the economy is inside the production possibilities curve, then more output can be produced using existing resources.
Answer the following statement true (T) or false (F)
True
Below the production possibilities curve, resources are not being fully employed, so we can get more production without sacrificing any goods.
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In order to lower the federal funds rate, the Fed ________ government securities in open market operations, so that banks' reserves ________ and the quantity of money ________
A) buys; increase; increases B) sells; increase; decreases C) buys; decrease; increases D) buys; decrease; decreases E) sells; decrease; decreases
C = 4,000 + 0.5y
I = 1,500 G =2,250 NX = -150 Given the equations for C, I, G, and NX above, what is the equilibrium level of GDP (Y)?
For any given increase in spending that is not directly caused by an increase in income, the impact on equilibrium GDP is greater than the initial spending increase
Indicate whether the statement is true or false
If the price of a good falls by 10% and the percentage increase in the total amount consumers spend on the good is 10%, then the good is
A. perfectly inelastic. B. unit elastic. C. elastic. D. inelastic.