Refer to Table 3-10. We could use the information in the table to draw a production possibilities frontier for Japan and a second production possibilities frontier for Korea. If we were to do this, measuring cars along the horizontal axis, then
Answer: the slope of Japan's production possibilities frontier would be -5 and the slope of Korea's production possibilities frontier would be -3.
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Based on the figure below. Starting from long-run equilibrium at point C, a tax increase that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies.
A. D; C B. D; B C. A; B D. B; C
What are the main characteristics of modern economic growth? What is the effect of modern economic growth on the cultural, social and political arrangements of our times?
Please provide the best answer for the statement.
An increase in government purchases of $200 billion will shift the aggregate demand curve to the right by
A) $200 billion. B) less than $200 billion. C) more than $200 billion. D) None of the above are correct. This policy shifts the long-run aggregate supply curve.
If the economy is operating on the relatively vertical segment of the aggregate supply curve, an increase in aggregate demand causes a ________ change in the price level and a ________ change in output.
A. big; big B. big; small C. small; big D. small; small