A country that must decrease production of one good in order to increase the production of another
A) must be using resources inefficiently.
B) must be producing on its production possibilities frontier.
C) must be producing beyond its production possibilities frontier.
D) must have private ownership of property.
Question 2
The natural unemployment rate ________.
A) is the same from year to year
B) is greater than the actual rate of unemployment
C) is the unemployment rate when there is no cyclical unemployment
D) equals zero
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Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ...