Author Question: When we look at a production possibilities curve, the opportunity cost can be understood as A) ... (Read 92 times)

sc00by25 · **on:** Jun 29, 2018

When we look at a production possibilities curve, the opportunity cost can be understood as

A) The point of maximum production of one good
B) The amount of the other good that must be given up for one more unit of production
C) The total cost of producing the good
D) The price people will pay for the additional amount produced

Question 2

An economy is at a full-employment equilibrium, and then the aggregate demand curve shifts leftward. As a result, the price level ________ and real GDP ________.

A) rises; increases
B) rises; decreases
C) falls; increases
D) falls; decreases
E) falls; does not change