A government, based upon its policy decisions, can determine the position and shape of the production possibilities frontier that the economy faces.
Answer the following statement true (T) or false (F)
False
You might also like to view...
An import is any good that is:
A) produced and consumed domestically. B) priced through an auction mechanism. C) produced abroad, but sold domestically. D) rationed and licensed by the government.
The two economists associated with the development of the theory of monopolistic competition were
A) Joan Robinson and Edward Chamberlin. B) David Hume and Adam Smith. C) John Neville Keynes and John Maynard Keynes. D) Carl Menger and Eugen Von Bohm-Bawerk.
B. excluded when calculating GDP because they do not reflect current production
A. added to exports when calculating GDP because imports reflect spending by Americans. B. subtracted from exports when calculating GDP because imports do not constitute spending by Americans. C. subtracted from exports when calculating GDP because imports do not constitute production in the United States. D. added when calculating GDP because imports do not constitute production in the United States.
Which of the following statements is incorrect?
A. Shifts in the monetary policy reaction curve shift the dynamic aggregate demand curve in the same direction. B. A fall in the central bank's target inflation rate shifts the monetary policy reaction curve to the left. C. A fall in the central bank's target inflation rate causes the monetary policy reaction curve to flatten. D. A decrease in the central bank's inflation target raises the real interest rate policymakers set at each level of inflation.