All output combinations that lie outside a production possibilities curve are attainable with available resources and technology.
Answer the following statement true (T) or false (F)
False
Attainable levels of production lie on or inside the production possibilities curve.
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In reality, the Fed is unable to use monetary policy to keep real GDP exactly at its potential level
Indicate whether the statement is true or false
In the above figure, what happens to the firm's optimal level of output if the price it receives for its product decreases from P4 to P3?
A) Output stays the same. B) Output decreases. C) Output increases. D) There is not enough information provided to know what happens to output.
What generally causes the business cycle? What are the four phases of a single business cycle? What are the problems associated with the business cycle?
When demand increases,
a. consumers are willing and able to purchase more of the good at every price b. consumers are willing and able to purchase less of the good at every price c. there is a movement to the right along the demand curve d. this is referred to as a change in quantity demanded e. the price will tend to fall