The production possibilities frontier illustrates
a. the combinations of output that an economy should produce.
b. the combinations of output that an economy should consume.
c. the combinations of output that an economy can produce.
d. All of the above are correct.
c
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A change in which of the following can change the long-run growth rate of the economy in the Romer model?
A) investments in public infrastructure B) the national saving rate C) the fraction of the population engaged in and the productiveness of research and development D) government spending and tax rates
According to the assumptions of the quantity theory of money, if the money supply increases by 5 percent, then
a. nominal and real GDP would rise by 5 percent. b. nominal GDP would rise by 5 percent; real GDP would be unchanged. c. nominal GDP would be unchanged; real GDP would rise by 5 percent. d. neither nominal GDP nor real GDP would change.
Use the answer you found when adding market demand curves vertically in Question 18 above to find the market equilibrium quantity if the market supply is constant at 4 units.
What will be an ideal response?
A price ceiling is:
A. a legal maximum quantity that can be sold at a particular price. B. a legal maximum price. C. a legal minimum quantity that can be sold at a particular price. D. a legal minimum price.