A point along the production possibility frontier is:
A. inefficient.
B. impossible.
C. efficient.
D. utility-maximizing.
C. efficient.
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According to this Application, some economists noticed that the change in the value of the U.S
dollar was largely due to the change in interest rates, and the change in interest rates occurred because of the Fed's use of ________ to further stimulate the economy. A) quantitative easing B) open market purchases C) open market sales D) discount operations
An expenditure-changing policy
A) alters the direction of the economy's total demand for goods and services. B) alters the level of the economy's total demand for goods and services. C) has no effect on aggregate demand. D) is the same thing as an expenditure-switching policy. E) affects aggregate supply but not aggregate demand.
If Y>C+I+G but Md= Ms, then
a. interest rates must rise and output must fall. b. both interest rates and output must fall. c. interest rates must fall and output must rise. d. both interest rates and output must rise. e. none of the above.
Refer to Figure 6.1. At point C
A) the marginal product of labor is greater than the average product of labor. B) the average product of labor is greater than the marginal product of labor. C) the marginal product of labor and the average product of labor are equal. D) the marginal product of labor and the average product of labor are both increasing. E) Both B and D are correct.