The most volatile component of GDP over the business cycle is

Refer to Figure 2-13. Which two arrows in the diagram depict the following transaction: Lizzie Haxem hires "The Paint Pros," a professional painting company, to paint her home

A) J and G B) K and M C) K and G D) J and M

Consider the following combinations of guns and butter that can be produced: 0 guns, 20,000 units of butter; 5,000 guns, 15,000 units of butter; 10,000 guns, 10,000 units of butter; 15,000 guns, 5,000 units of butter; 20,000 guns, 0 units of butter. The PPF between guns and butter is

A) a downward-sloping bowed-out curve. B) a downward-sloping straight line. C) an upward-sloping straight line. D) It is impossible to answer this question without knowing which good would be plotted on the vertical axis.