« previous next »

Author Question: What does a production point beyond the production possibilities frontier represent? What will be ... (Read 77 times)

piesebel

  • Hero Member
  • *****
  • Posts: 565
on: Jun 29, 2018
What does a production point beyond the production possibilities frontier represent?
 
  What will be an ideal response?

Question 2

Describe how a demand-pull inflation can occur.
 
  What will be an ideal response?


tkempin

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jun 29, 2018
Answer to Question 1

A production point beyond the production possibilities frontier is an unattainable combination of products.

Answer to Question 2

Demand-pull inflation starts from an initial increase in aggregate demand. But if this increase is a one-time only event, the result is a higher price level but not inflation. For inflation to occur, aggregate demand needs to continue to increase. Continuing increases in the quantity of money result in continuing increases in aggregate demand, so monetary growth is necessary for a demand-pull inflation.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

piesebel

  • Hero Member
  • *****
  • Posts: 565
Reply #2 on: Jun 29, 2018
Thank you :)


tkempin

  • Sr. Member
  • ****
  • Posts: 332
Reply #3 on: Jun 29, 2018
Happy to help you


« previous next »
 

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Did you know?

The U.S. Preventive Services Task Force recommends that all women age 65 years of age or older should be screened with bone densitometry.

Did you know?

The largest baby ever born weighed more than 23 pounds but died just 11 hours after his birth in 1879. The largest surviving baby was born in October 2009 in Sumatra, Indonesia, and weighed an astounding 19.2 pounds at birth.

Did you know?

Over time, chronic hepatitis B virus and hepatitis C virus infections can progress to advanced liver disease, liver failure, and hepatocellular carcinoma. Unlike other forms, more than 80% of hepatitis C infections become chronic and lead to liver disease. When combined with hepatitis B, hepatitis C now accounts for 75% percent of all cases of liver disease around the world. Liver failure caused by hepatitis C is now leading cause of liver transplants in the United States.

Did you know?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Microlith production. Microlith production.
ATP Production in Cardiac Muscle ATP Production in Cardiac Muscle
Let A ⊆ R and p ∈ A. Suppose A\{p}6= ∅. Prove that p is an isolated point of A if and ... Let A ⊆ R and p ∈ A. Suppose A\{p}6= ∅. Prove that p is an isolated point of A if and ...
An aqueous solution has a normal boiling point of 103.0C. What is the freezing point of this ... An aqueous solution has a normal boiling point of 103.0C. What is the freezing point of this ...
A three-point mapping cross in Drosophila melanogaster A three-point mapping cross in Drosophila melanogaster
Changing Dimensions of the Pregnant Uterus. Numbers Represent Weeks of Gestation Changing Dimensions of the Pregnant Uterus. Numbers Represent Weeks of Gestation
Video: Electrical changes in the heart

For a complete list of videos, visit our video library