Author Question: A consumption possibilities curve shows the combinations of two goods that can be consumed when a ... (Read 67 times)

fox · **on:** Jun 30, 2018

A consumption possibilities curve shows the combinations of two goods that can be consumed when a nation specializes in producing a particular good and trades with another nation.

Indicate whether the statement is true or false

Question 2

In order to analyze the factors that determine the quantity of real GDP demanded, in the aggregate expenditure model we assume that

A) real GDP does not change.
B) the unemployment level is fixed.
C) the inflation rate is assumed to equal the natural unemployment rate.
D) the natural rate of unemployment is fixed.
E) the price level is fixed.