Which of the following will shift the production possibilities curve outward?
a. a hurricane that destroys buildings throughout Florida
b. an increase in the capacity utilization of existing factories
c. an increase in the unemployment rate
d. a decrease in the market price of both goods
d
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According to the quantity theory of money:
A) when the gap between the growth rate of money supply and the growth rate of real GDP widens, inflation decreases. B) when the gap between the growth rate of money supply and the growth rate of real GDP widens, inflation increases. C) when the gap between the growth rate of money supply and the growth rate of real GDP widens, nominal interest rates decrease. D) when the gap between the growth rate of money supply and the growth rate of real GDP widens, real interest rates increase.
What is creeping inflation?
a. Inflation that continues to rise but slowly. b. Inflation that suddenly appears without warning. c. Price levels that suddenly rise without warning. d. Price levels that continue to rise but slowly. e. Inflation that suddenly appears and creates panic.