If the price level rises, the aggregate expenditure curve shifts downward and the economy moves up the aggregate demand curve

The concave shape of the production possibilities frontier reflects

a. the law of comparative advantage b. the law of absolute advantage c. the law of increasing opportunity cost d. the simplifying assumption of scarce resources e. productive inefficiency

Which of the following will benefit by an unexpected increase in inflation?

a. a union member with a COLA wage contract b. someone with a large stash of cash in a safe deposit box c. a bank lending money at a fixed rate of interest d. a person who is not due to receive a pay raise for another 11 months