The only way that a society can produce outside the production possibilities curve is
A) through economic growth.
B) by producing efficiently.
C) by obeying the Law of Increasing Additional Cost.
D) to use the concept of opportunity cost.
A
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Suppose the federal government had budget surpluses of $80 billion in year 1 and $120 billion in year 2 but had budget deficits of $10 billion in year 3 and $40 billion in year 4. Also assume that it used its budget surpluses to pay down the public debt. At the end of these four years, the federal government's public debt would have
A. increased by $50 billion. B. decreased by $200 billion. C. increased by $150 billion. D. decreased by $150 billion.
Many economists describe the 2007–2009 period in the United States as being a condition of a(n)
A. deflationary gap. B. recessionary gap. C. inflationary gap. D. reflationary gap.
An open market sale by the Fed:
A. increases the money supply and increases output. B. increases the money supply and decreases output. C. decreases the money supply and increases output. D. decreases the money supply and decreases output.
The larger the percentage of people who work, the ________ output per capita.
A. lower the actual B. lower the potential C. higher the actual D. higher the potential