In the production possibilities model, the vertical axis measures ________ and the horizontal axis measures ________.
A) people's wants; the quantity of a good or service
B) the quantity of a good or service; time
C) the price of a good or service; the price of another good or service
D) the price of a good or service; the quantity of the good or service
E) the quantity of a good or service; the quantity of another good or service
Question 2
An increase in potential GDP ________ aggregate supply and ________.
A) decreases; shifts the AS curve rightward
B) increases; shifts the AS curve rightward
C) decreases; shifts the AS curve leftward
D) increases; shifts the AS curve leftward
E) has no effect on; does not shift the AS curve
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