Refer to the above production possibilities curves. Curve (a) is the current curve for the economy. The movement from curve (a) to curve (b) suggests:
A. a movement from unemployment to full employment.
B. a decline in the total output of this society.
C. an improvement in consumer goods technology but not in capital goods technology.
D. an improvement in capital goods technology but not in consumer goods technology.
Answer: D
Economics
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Illustrate with a graph the effects of fiscal policy when exchange rates are fixed
What will be an ideal response?
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