Author Question: During periods of unemployment A) the economy operates at a point inside the production ... (Read 49 times)

theo · **on:** Jun 29, 2018

During periods of unemployment

A) the economy operates at a point inside the production possibilities curve.
B) the economy operates at a point outside the production possibilities curve.
C) the production possibilities curve shifts inward.
D) the production possibilities curve shifts outward.

Question 2

A decrease in aggregate demand will cause

A) prices to fall according to classical economists, and unemployment to increase according to Keynes.
B) prices to fall and unemployment to increase according to both classical economists and Keynes.
C) aggregate supply to fall according to classical economists, and prices to fall according to Keynes.
D) aggregate supply to fall according to Keynes, and unemployment to increase according to classical economists.