The slope of the production possibility frontier shows
a. how inputs must be changed to keep them fully employed.
b. the technically efficient combinations of the two goods.
c. how demanders are willing to trade one good for another.
d. the opportunity cost of one good in terms of the other.
d
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Suppose the economy currently has an inflationary ga
A) decrease aggregate demand, decrease prices, and decrease real GDP. B) increase short-run aggregate supply, decrease prices and increase real GDP. C) increase short-run aggregate supply, decrease in prices and decrease in real GDP. D) decrease aggregate demand, decrease prices, and increase real GDP.
Starting from equilibrium in the ISLM framework, an increase in money demand results in
A) a rise in income and the interest rate. B) a rise in income and a decline in the interest rate. C) a decline in income and the interest rate. D) a decline in income and a rise in the interest rate.