The production possibilities frontier shifts as
A) tastes and preferences change.
B) the money supply grows or shrinks.
C) technology changes.
D) the unemployment rate changes.
Answer: C) technology changes.
Economics
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The percentage rate of change in the price level is called the
A) Consumer Price Index. B) rate of inflation. C) chain-weighted price index. D) rate of absorption.
Economics
Why is the demand for real money balances downward sloping?
A) because the opportunity cost of holding money decreases as interest rates decrease B) because when the interest rate falls the quantity of money demanded increases C) because lower interest rates encourage firms and households to increase their money holdings D) all of the above E) none of the above
Economics