Which of the following characteristics of a production possibilities frontier indicates that trade-offs must be made?
A. The downward slope
B. The upward slope
C. The constant slope
D. The curvature
Answer: A
Economics
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LRE. Suppose there is an increase in SRAS. As wages eventually react to the new situation, what will happen? Wages will _____ and SRAS will shift ___
a. increase; right b. increase; left c. decrease; right d. decrease left
Economics
Which one of the following statements about deflation is false?
a. Deflation is good for lenders. b. Deflation is bad for borrowers. c. Deflation boosts people's real incomes. d. Deflation raises the burden of carrying debt. e. During the last half of the 20th century, the U.S. economy has experienced deflation for more years than it experienced inflation.
Economics