The political party that is in power determines the position and shape of the production possibilities frontier that constrains the choices of the economy.

Assume the Fed wants to lower the interest rate. How does the Fed lower the interest rate in the short run?

What will be an ideal response?

Which of the following is an example of a normative statement?

A) Since this good is bad for you, you should not consume it. B) This good has bad health effects. C) If you consume this good, you will get sick. D) People usually get sick after consuming this good.