Which of the following statements is true?
A) The production possibilities curve of a nation is fixed in the long run.
B) The production possibilities curve can only shift to the right.
C) The production possibilities curve of an economy is concave to the origin.
D) The slope of the production possibilities curve represents the ratio of the marginal cost of producing goods.
C
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During an expansion, how do inflation and unemployment typically change?
A) Inflation and unemployment both fall. B) Inflation falls and unemployment rises. C) Inflation and unemployment both rise. D) Inflation rises and unemployment falls.
The "rules of the game" under the gold standard can best be described as which of the following:
A) selling domestic assets in a deficit and buying assets in a surplus. B) slowing down the automatic adjustments processes inherent in the gold standard. C) selling domestic assets in order to accumulate gold. D) selling foreign assets in a deficit and buying foreign assets in a surplus. E) selling domestic assets in a surplus.