Approximately two decades after a "baby boom," one could expect:
a. production to change from an interior point to a point along the production possibilities curve.
b. a movement along the production possibilities curve from one point to another
c. an outward shift of the production possibilities curve along both axes.
d. an inward shift of the production possibilities curve.
c
You might also like to view...
Gordon suggests that full indexation of production costs to nominal AD would solve the macroeconomic externality. However, individual firms would be unlikely to extend full indexation to their workers because
A) its local customers may not buy its products at the new price level. B) its suppliers may reside in foreign countries and are therefore, not subject to indexation. C) other competitor firms will not index their wages. D) All of the above.
Studies show that the demand curve for peas has shifted. Which of the following explanations would you reject first?
a. The price of string beans has changed. b. The demand for corn has changed. c. The demand for string beans has changed. d. The income of consumers has changed. e. The price of peas has changed.