If an economy is operating on its production possibilities frontier (PPF), are there any unemployed resources in the economy?
A) Yes, because if there weren't any unemployed resources the economy would be producing beyond its PPF.
B) No, because if there were any unemployed resources the economy would be producing below its PPF.
C) It depends on whether the economy's PPF is a concave (downward-sloping) curve or a straight line.
D) Yes, because there are always some natural resources that are unemployed.
E) The answer is "yes," but not for any of the reasons specified in answers a through d.
B
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What effect does an increase in real GDP have on the demand for money?
What will be an ideal response?
A decrease in the money supply
a. raises the interest rate, causing an increase in quantity demanded of investment and an increase in GDP b. lowers the interest rate, causing an increase in quantity demanded of investment and an increase in GDP c. raises the interest rate, causing a decrease in quantity demanded of investment and a decrease in GDP d. lowers the interest rate, causing a decrease in quantity demanded of investment and an increase in GDP e. lowers the interest rate, causing a decrease in quantity demanded of investment and a decrease in GDP
The steepness of a curve is partially determined by the units of measurement.
Answer the following statement true (T) or false (F)
Measured between two points on a curve, the ratio of the change in the variable on the vertical axis to the change in the variable on the horizontal axis is the:
A. axis. B. slope. C. dependent curve. D. independent curve.