Suppose the economy goes from a point on its production possibilities frontier (PPF) to a point below that PPF. Assuming that the PPF has not shifted, this could be due to
A) a gain of resources.
B) a loss of resources.
C) technological improvement in the production of both goods.
D) an increase in unemployment of some resources.
D
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The government's holdings of foreign currency is recorded in the
A) money account. B) current account. C) currency account. D) official settlements account. E) capital and financial account.
To convert the nominal interest rate to the real interest rate, we
A) divide the nominal interest rate by the inflation rate. B) multiply the nominal interest rate by the inflation rate. C) subtract the inflation rate from the nominal interest rate. D) add the inflation rate to the nominal interest rate. E) subtract the nominal interest rate from the inflation rate and then multiply by 100.
The economic hardship resulting from a financial crises is severe, however, there are also social consequences such as
A) increased crime. B) difficulty getting a loan. C) currency devaluations. D) loss of output.
As new firms enter a monopolistically competitive market, product differentiation becomes less pronounced
Indicate whether the statement is true or false