Rate of return regulation sets the price at a level that enables the regulated firm to earn a specified target percent return on its

A production possibilities curve is plotted for a nation producing cotton and jute. Which of the following will cause a parallel rightward shift of the production possibilities curve?

A) An invention of a new fertilizer that increases cotton production by ten percent, without any effect on jute production B) An invention of a new fertilizer that increases jute production by five percent, without any effect on cotton production C) An invention of a new fertilizer that increases production of both cotton and jute by ten percent D) A two-times increase in the price of all cotton products and a three-times increase in the price of all jute products

If fluctuations in economic activity come from the supply side, higher inflation is associated with

a. lower interest rates. b. structural deficits. c. higher rates of unemployment. d. lower rates of unemployment.