The slope of the short-run aggregate supply curve depends on how sharply:
a. the marginal cost of production rises as real GDP expands.
b. the average cost of production rises as real GDP expands.
c. real GDP increases as the price level rises

The figure above shows a nation's production possibilities frontier. If the marginal cost equals the marginal benefit at point A when 4 million pizzas are produced,

A) allocative efficiency is achieved but production efficiency is not achieved because there are no tacos being produced. B) both allocative and production efficiency are achieved. C) production efficiency is achieved but allocative efficiency is not achieved because there are no tacos being produced. D) production efficiency is achieved but allocative efficiency is not achieved because the number of tacos produced is at its absolute maximum. E) neither allocative nor production efficiency has been achieved.

The Federal Reserve Banks sell government securities to the public. As a result, the checkable deposits ________.

A. of commercial banks are unchanged, but their reserves decrease B. and reserves of commercial banks both decrease C. of commercial banks are unchanged, but their reserves increase D. and reserves of commercial banks are both unchanged