An economy that is producing inside its production possibilities frontier can be efficient.

Given the values in the table above, consumption is ________ when equilibrium output is 15

A) 12.3 B) 11.86 C) 12.05 D) 11.55 E) none of the above

A change in which of the following variables would affect the cash flow for a firm?

A) changes in the nominal interest rate B) expected future profit C) changes in the real interest rate D) changes in expected inflation E) none of the above