Author Question: Given its production possibilities curve, the optimal combination of outputs for a society: a. is ... (Read 56 times)

ts19998 · **on:** Jun 30, 2018

Given its production possibilities curve, the optimal combination of outputs for a society:
a. is beyond the production possibilities curve.
b. is at the midpoint of the production possibilities curve.
c. is inside the production possibilities curve.
d. depends on the preferences of that society.

Question 2

If there is currently an inflationary gap, an increase in aggregate demand will make the inflationary gap smaller, but a decrease in aggregate demand would make the inflationary gap larger.
a. True
b. False
Indicate whether the statement is true or false