Refer to the diagram. Which of the following is a positive statement?
A. A point inside the production possibilities curve is superior to a point on the curve because
the former requires less work effort.
B. Because any society should stress economic growth as its major goal, point D is superior
to point C.
C. Point B is preferable to point C because the ultimate goal of economic activity is to
maximize consumption.
D. Given its resources and technology, this society is incapable of simultaneously producing 3
units of tractors and 15 units of bread.
D. Given its resources and technology, this society is incapable of simultaneously producing 3
units of tractors and 15 units of bread.
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The long-run aggregate supply curve shows:
A. the economy's actual growth rate whether things are going well or not. B. the economy's potential inflation rate if all is going well. C. the economy's potential growth rate if all is going well. D. the economy's actual inflation rate whether things are going well or not.
The FOMC no longer sets targets for M1 and M2 to meet its goals of price stability and high employment
Indicate whether the statement is true or false