Using Figure 1.5, if an economy is currently producing on PP2, which of the following would shift the production possibilities curve toward PP1?
A. An advancement in technology.
B. A decrease in the level of unemployment towards the normal level.
C. An increase in the quantity of labor available.
D. A decrease in the amount of capital available.
Answer: D
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In the figure above, what happens if the Fed increases the quantity of money by 8 percent?
A) The interest rate rises to 1.08. B) The value of money rises to 1.08. C) The value of money falls to 0.92 and there is a movement downward along the LRMD. D) The LRMD curve shifts rightward to restore equilibrium. E) The price level falls to 1.08.
All points on the production possibilities frontier
A) are production inefficient. B) achieve allocative efficiency. C) are production efficient but only one point achieves allocative efficiency. D) are allocatively efficient but only one point achieves production efficiency. E) are allocatively inefficient.
What are Eurobanks and how are they different from domestic banks?
What will be an ideal response?
Which of the following will improve your supplier contracting bargaining position
a. Your supplier merges with an alternative supplier b. You redesign your component requirements to be more flexible across different potential suppliers c. You redesign your component requirements so that your preferred supplier is more integral to product success d. Your supplier's chief competitor has exited the market