A production possibilities curve shows the various combinations of two outputs that:
a. an economy should produce.
b. an economy can produce.
c. consumers would like to consume.
d. producers would like to produce.
b
You might also like to view...
In the aggregate demand and supply model, the:
a. vertical axis measures the average price level. b. horizontal axis measures real GDP. c. aggregate supply curve is vertical at full-employment real GDP. d. All of these.
Suppose the base year of the CPI is 2010, and the CPI calculated for 2012 was 102. What is the correct interpretation of this number?
A. Average prices in the economy have increased by 102 % since 2010. B. Average prices in the economy have increased by 1.9 % since 2010. C. The cost of living for a typical consumer is 2 % higher than it was in 2010. D. The average goods of all consumers has risen an average of 2 % from 2010 to 2012.
Contractionary fiscal policy is deliberate government action to influence aggregate demand and the level of real GDP through:
A. expanding and contracting the money supply. B. encouraging business to expand or contract investment. C. regulating net exports. D. decreasing government spending or increasing taxes.
The money demand curve will shift to the left if:
A. the price level increases. B. ATM machines are introduced. C. the nominal interest rate increases. D. the nominal interest rate decreases.