If society were to experience an increase in its available resources its production possibilities frontier would:
A. shift out.
B. shift in.
C. not move.
D. become convex.
A. shift out.
You might also like to view...
To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
Whatever specific form it takes, the excise tax is regressive
Indicate whether the statement is true or false
In a market economy, which of the following is most important if one is going to achieve high earnings?
a. hard work b. having a graduate degree in a field like history or sociology c. provision of goods and/or services that others value highly d. membership in a labor union
In the classical model where aggregate supply is vertical with respect to the price level, an increase (shift) in aggregate demand will yield
A. a relatively large increase in output. B. an equal change in output. C. a relatively large increase in the price level. D. a relatively small change in the price level.