The following graph shows the production possibilities curve for the economy with only two members, Silvia and Art. Silvia can produce either 50 pounds of beef or 2 computers per week, and Art can produce 100 pounds of beef or 1 computer per week. Both of them work 40 weeks per year.Art's opportunity cost of producing one computer is ________ pounds of beef.

Refer to the above figure. An increase in aggregate demand beyond real Gross Domestic Product (GDP) level Y1 would result in

A) a lower price level and an increases in real GDP. B) higher real GDP but not a higher price level. C) a lower price level but no change in real GDP. D) a higher price level but no change in real GDP.

Based on the Phillips Curve, when the actual rate of inflation is greater than the expected rate, the unemployment rate will:

A. Rise temporarily, but decreases in nominal wages will bring the expected and actual rates of inflation into balance B. Rise temporarily, but increases in nominal wages will bring the expected and actual rates of inflation into balance C. Fall temporarily, but increases in nominal wages will bring the expected and actual rates of inflation into balance D. Fall temporarily, but decreases in nominal wages will bring the actual and expected rates of inflation into balance