Consider a production possibilities curve for an economy producing bicycles and video game players. It is possible to increase the production of bicycles without sacrificing video game players if:
a. the production possibilities curve shifts outward due to technological progress.
b. the production possibilities curve shifts outward due to increased immigration (which enlarges the labor force).
c. the economy moves from a point inside the production possibilities curve to a point on the curve.
d. any of the above occur.
Question 2
An increase in the ____ interest rate will lead to an increase in the ____.
a. nominal; demand for loanable funds
b. nominal; supply of loanable funds
c. real; quantity of loanable funds supplied
d. real; quantity of loanable funds demanded
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