Refer to the above diagram. If the production possibilities curve of an economy shifts from AB to CD, it is most likely the result of what factor affecting economic growth?
A. A supply factor
B. A demand factor
C. An efficiency factor
D. An allocation factor
A. A supply factor
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All else constant, a decrease in the per unit price of labor would create an incentive for a firm manager to substitute labor for capital in the firm's production process
Indicate whether the statement is true or false
Inflation represents
A) an increase in output. B) an increase in the aggregate price level. C) an increase in the unemployment rate. D) a recession.
Protection is often temporary to help infant industries.
Answer the following statement true (T) or false (F)
Which of the following is true?
A) The real interest rate can never be zero. B) The nominal interest rate is usually negative. C) The real interest rate is always positive. D) The nominal interest rate is usually less than the real interest rate. E) The real interest rate can be negative.