In the production possibilities model, the vertical axis measures ...

[Arii_bell]

In the production possibilities model, the vertical axis measures ________ and the horizontal axis measures ________.
 
  A) people's wants; the quantity of a good or service
  B) the quantity of a good or service; time
  C) the price of a good or service; the price of another good or service
  D) the price of a good or service; the quantity of the good or service
  E) the quantity of a good or service; the quantity of another good or service

Question 2

An increase in potential GDP ________ aggregate supply and ________.
 
  A) decreases; shifts the AS curve rightward
  B) increases; shifts the AS curve rightward
  C) decreases; shifts the AS curve leftward
  D) increases; shifts the AS curve leftward
  E) has no effect on; does not shift the AS curve

[yeungji]

Answer to Question 1

E

Answer to Question 2

B