The recession of 2007-2009 would most likely be represented in a production possibilities frontier graph by
A) a point inside the frontier.
B) a point outside the frontier.
C) a point on the frontier.
D) an intercept on either the vertical or the horizontal axis.
Answer: A
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Suppose the government launches a successful advertising campaign that convinces workers with high school degrees to quit their jobs and become full time college students. This would cause
A) the unemployment rate to decrease. B) the number of discouraged workers to increase. C) no change in the unemployment rate. D) the labor force participation rate to decrease.
Real wages usually lag behind the increases in labor productivity
a. True b. False Indicate whether the statement is true or false
If the Fed decreases the reserve requirement, it will likely:
A. decrease the amount of excess reserves which will eventually decrease the money supply. B. increase the amount of excess reserves which will eventually increase the money supply. C. increase the amount of excess reserves which will eventually decrease the money supply. D. decrease the amount of excess reserves, which will eventually increase the money supply.
Economists generally define the short run as being
A) that period of time in which at least one of the firm's inputs, usually plant size, is fixed. B) that period of time in which all inputs are variable. C) any period of time less than one year. D) any period of time less than six months.