Exhibit 2-18 Production possibilities curves
In Exhibit 2-18, the production possibilities curves for a country are shown for the years Year X and Year Y. Suppose this country was located at point A in Year X and point B in Year Y. This economy:
A. is worse off in Year Y than in Year X.
B. has stagnated production in this two year period.
C. has less unemployment in Year Y than it did in Year X.
D. has shown growth between these two years.
Answer: D
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