We have achieved production efficiency if we can produce more of one good without producing less of some other good

Refer to Figure 5-2. The deadweight loss due to the externality is represented by the area

A) abc. B) abd. C) abf. D) ade.

Assume that seigniorage and the government's primary deficit are both zero. A change in the debt-to-GDP ratio depends on just

A) the rate of inflation and total factor productivity. B) the growth rate of real GDP and the real interest rate. C) the growth rate of the money supply and the nominal interest rate. D) the growth rate of nominal GDP and the rate of inflation.