The members of the Federal Reserve Board of Governors serve

Sustained inflation over many years is most likely due to increases in the money supply in excess of increases in potential output.

a. true b. false

Two firms, each producing different goods, can achieve a greater output than one firm producing both goods with the same inputs. We can conclude that the production process involves

A) diseconomies of scope. B) economies of scale. C) decreasing returns to scale. D) increasing returns to scale.