Refer to Exhibit 2-3. If PPF1 is the relevant production possibilities frontier, a shift to PPF2 may depict
economic growth.
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Which of the following is a normative concept?
a. Nash equilibrium. b. Stackelberg equilibrium. c. Pareto optimality. d. Nash equilibrium, Stackelberg equilibrium, and Pareto optimality are all normative concepts.
One of the key economic questions is "who consumes the products?"
Indicate whether the statement is true or false
New Keynesian inflation dynamics can account for sluggish responses of
A) real GDP to variations in aggregate supply. B) real GDP to variations in aggregate demand. C) inflation to variations in aggregate supply. D) inflation to variations in aggregate demand.
When the federal government is running a budget deficit,
a. government revenues exceed government expenditures. b. government expenditures exceed government revenues. c. the economy must be in an economic recession. d. the size of the national debt will decline.