Refer to Figure 17.3. Assume X units of plants and equipment wear out each year. What will happen to the PPC in the future if the economy currently produces at point U?
A. It will shift outward.
B. It will shift inward.
C. It will stay the same.
D. This cannot be determined with the information given.
Answer: B
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In the above figure, total revenue for this profit-maximizing monopolistically competitive firm is
A) $50,000. B) $91,000. C) $96,000. D) $100,000.
If there is an increase in energy prices, how will it affect the short-run aggregate supply curve?
On which of these bonds is the prospect of default least likely?
a. a junk bond b. a bond issued by the state of Arizona c. a bond issued by the federal government d. a bond issued by General Electric Corporation
Congress is debating whether to raise taxes by $100 billion or decrease spending by $100 billion in order to eliminate a budget deficit. Which action will have the larger effect on equilibrium GDP?
A. The increase in taxes B. The decrease in spending C. The effects will be equal D. Not possible to determine without knowing the multiplier