Author Question: From a point inside the production possibility frontier, a. more of one good can be produced only ... (Read 48 times)

Collmarie · **on:** Jun 30, 2018

From a point inside the production possibility frontier,
a. more of one good can be produced only by sacrificing some output of another good.
b. it is possible to increase production of both goods.
c. it is impossible to increase production of either good with current resources and technology.
d. increased output of both goods can only occur if the production possibility curve shifts outward.

Question 2

An unexpected decrease in aggregate demand results in an increase in real interest rates in the short run.
a. True
b. False
Indicate whether the statement is true or false