The figure above shows a production possibilities frontier. In ...

[hbsimmons88]

The figure above shows a production possibilities frontier. In the figure, the economy faces a tradeoff when ________ cell phones and ________ DVDs. are produced.
 
  A) 2 million; 9 million
  B) 4.5 million; no
  C) 3 million; 8 million
  D) 5 million; 15 million
  E) 3 million; 9 million

Question 2

Exports decrease by 500 billion, investment increases by 300 billion, and government expenditure increases by 200 billion. As a result, autonomous expenditures ________ , total expenditures ________ , and equilibrium real GDP ________.
 
  A) increases by 3500 billion; increases; increases by more than 300 billion
  B) decreases by 200 billion; decreases; decreases by more than 200 billion
  C) increases by 500 billion; increases; increases by more than 500 billion
  D) decreases by 300 billion; decreases; decreases by more than 300 billion
  E) is unchanged; is unchanged; is unchanged

[vickybb89]

Answer to Question 1

E

Answer to Question 2

E

[hbsimmons88]

Correct answers!

[vickybb89]

Great! Please up vote