How does economic growth influence the production possibilities frontier?
What will be an ideal response?
Economic growth shifts the PPF outward. Persistent outward shifts in the production possibility frontier—economic growth—are caused by the accumulation of resources, such as more capital equipment or by the development of new technology.
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In the Keynesian model, when is the economy in short-run equilibrium?
a. when there is no inflation b. when there is full employment c. when there is a balanced federal budget d. when total spending (demand) is equal to production (supply)
If you purchase a gift worth $25 for your sister, but your sister would be willing to pay only $10 is she bought the item for herself, then the:
A. Total utility of the gift is $35 B. Total utility of the gift is $15 C. Marginal utility of the gift is $15 D. Loss of value in the gift is $15