The production possibilities frontier for a country is usually drawn
a. as a straight line, sloping downward.
b. as a straight line, sloping upward.
c. bowed outward from the origin.
d. bowed inward toward the origin.
e. as a dotted line when sloping downward and as a full line when sloping upward.
c
You might also like to view...
By announcing a higher inflation target, a central bank can
A) permanently increase real GDP and permanently decrease the unemployment rate. B) temporarily increase real GDP and permanently decrease the unemployment rate. C) permanently increase real GDP and temporarily decrease the unemployment rate. D) temporarily increase real GDP and temporarily decrease the unemployment rate.
Refer to Figure 6.1. Suppose the economy is originally in steady state at k*1. If the saving rate increases from s1 to s2,
A) depreciation becomes greater than investment. B) investment becomes greater than depreciation. C) investment becomes greater than saving. D) saving becomes greater than investment.