Using a production possibilities curve, a technological advance that increases the amount of output for both goods while using the same amount of inputs would be illustrated by which of the following?

Refer to the figure above. What is the equilibrium quantity of bottled water?

A) 10 units B) 20 units C) 30 units D) 40 units

Fiscal expansion under fixed exchange rates will have what temporary effect?

A) the money supply will decrease. B) output will decrease. C) the exchange rate will increase. D) the exchange rate will decrease. E) there will be no effect.