Refer to the graph below. An expansion of the economy's production possibilities can, by itself:
A. Never cause inflation
B. Never cause price level to fall
C. Cause a decrease in real output
D. Cause a decrease in employment level
A. Never cause inflation
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What causes a production possibilities frontier to shift inward?
What will be an ideal response?
Economic agents can raise money capital by ________
A) issuing liabilities B) repaying a loan C) paying taxes D) providing a subsidy
Profit is maximized when which of the following conditions occurs?
a. Total revenue equals total cost. b. Average revenue equals average cost. c. Marginal revenue equals marginal cost. d. Both b. and c. above are correct.
Over time, an increase in a nation's stock of physical capital will
a. shift the production possibilities curve inward. b. cause an economy to operate inside its production possibilities curve. c. shift the production possibilities curve outward. d. eliminate the basic economic problem of scarcity.