Government spending on transfer payments is included in government purchases when calculating GDP because it results in the production of new goods and services

The figure above shows a production possibilities frontier. In the figure, the economy faces a tradeoff when ________ cell phones and ________ DVDs. are produced

A) 2 million; 9 million B) 4.5 million; no C) 3 million; 8 million D) 5 million; 15 million E) 3 million; 9 million

What happens to the demand for loanable funds curve when the economy enters a recession?

A) The demand for loanable funds curve shifts leftward because wealth decreases. B) The demand for loanable funds curve shifts leftward because expected profit falls. C) The demand for loanable funds curve shifts leftward because the real interest rate falls. D) The demand for loanable funds curve shifts rightward because the real interest rate falls. E) The demand for loanable funds curve shifts rightward because expected profit falls.