If the economy were producing at point E and moved to point D,
A. the unemployment rate would increase.
B. the unemployment rate would decrease.
C. the production possibilities would shift outward.
D. the economy would shift resources from producing butter to increasing the production of guns.
D. the economy would shift resources from producing butter to increasing the production of guns.
You might also like to view...
According to classical macroeconomic theory, nominal variables, but not real variables, are affected by changes in the
a) supply schedule. b) labor supply. c) money supply. d) aggregate supply.
Which of the following correctly identifies a problem with price regulation?
A) It minimizes social surplus. B) It minimizes consumer surplus. C) Sellers do not have an incentive to cut costs. D) Government intervention increases deadweight loss.