The production possibilities curve demonstrate which of the following concepts?

If a monopolist lowers its price from $45 to $42 in order to increase its sales volume, marginal revenue

a. equals $45. b. equals $42. c. is less than $42. d. is between $45 and $42.

Assume goods X and Y are complements. A decrease in the price of X would cause the demand for Y to increase

Indicate whether the statement is true or false

Federal funds are

A) funds owned by the federal government. B) funds owned by the Federal Reserve. C) bank reserves that are lent overnight between banks. D) bank reserves that are lent overnight by the Federal Reserve to banks.

If the short-run Phillips curve shifts to the right, we can conclude that:

a. the trade-off between inflation and unemployment has improved over time. b. the trade-off between inflation and unemployment has worsened over time. c. the inflation rate associated with any given level of unemployment has declined. d. the unemployment rate associated with any given inflation rate has declined. e. the trade-off between inflation and unemployment has remained unchanged.