Which of the following is a correct statement about production possibilities frontiers?
a. An economy can produce only on the production possibilities frontier.
b. An economy can produce at any point inside or outside a production possibilities frontier.
c. An economy can produce at any point on or inside the production possibilities frontier, but not outside the frontier.
d. An economy can produce at any point inside the production possibilities frontier, but not on or outside the frontier.
c
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What are the three types of monetary policy lags?
A) the recognition lag, the identification lag, and the implementation lag B) the recognition lag, the inflation lag, and the impact lag C) the recognition lag, the implementation lag, and the government lag D) the recognition lag, the implementation lag, and the impact lag
Refer to Table 8-8. Suppose that a simple economy produces only four goods and services: sweaters, CDs, sugar, and soft drinks
Assume one half of the sugar is used in making the soft drinks and the other half of the sugar is purchased by households. Calculate nominal GDP for this simple economy.