A basic assumption in comparing the production possibilities curves of two nations is that those possibilities curves reflect differences in:

According to traditional Keynesians, monetary policy as a tool to fight a recession

A) is very effective because interest rates will fall immediately. B) has an uncertain effect on the economy, depending on the direction of fiscal policy. C) is ineffective because interest rates will not fall. D) cannot be determined because traditional Keynesians do not consider monetary policy at all.

The production possibilities curve marks the boundary between attainable and unattainable combinations of output

a. True b. False Indicate whether the statement is true or false