A production possibilities curve will shift inward
A. when the unemployment rate increases.
B. when a war destroys the capital goods of a country.
C. when production is inefficient.
D. when resources are expanding.
Answer: B
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The AD curve is a graph depicting the
A) relationship between the price level and the quantity of real GDP demanded. B) relationship between the price level and potential GDP. C) relationship between the price level and the quantity of real GDP supplied. D) business cycle during expansions and recessions. E) relationship between the aggregate quantity of real GDP demanded and the aggregate quantity of real GDP supplied.
Equilibrium price is _____ and equilibrium quantity is ______ units.
A. $12; 20
B. $12; 30
C. $20; 20
D. $20; 30
A sale of securities by the Fed causes
A. a contraction of the money supply equal to the amount of the securities sold. B. a multiple expansion of the money supply greater than the amount of the securities sold. C. a multiple contraction of the money supply greater than the amount of the securities sold. D. an expansion of the money supply equal to the amount of the securities sold.
An improvement in one of the four supply factors is a sufficient condition for economic growth. Evaluate.
What will be an ideal response?