A PPF is more likely to be a downward-sloping curve that is bowed outward than a downward-sloping straight line because most resources are
A) better suited for the production of some goods than others.
B) used efficiently.
C) relatively cheap at low levels of output.
D) used to produce consumption goods.
A
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Secular deflation occurs when
A) both aggregate demand and aggregate supply are shifting left. B) there is no economic growth and aggregate demand falls. C) aggregate demand increases at the same time there is no economic growth. D) aggregate demand remains unchanged while economic growth increases long-run aggregate supply.
Which of the following concerns were raised as a result of record low interest rates in 2012?
A) high perceived risk of default B) high interest rate risk C) corporations facing a lack of demand for bonds D) high risk premiums on investment-grade corporate bonds