Given its production possibilities curve, the optimal combination ...

[ts19998]

Given its production possibilities curve, the optimal combination of outputs for a society:
 a. is beyond the production possibilities curve.
 b. is at the midpoint of the production possibilities curve.
  c. is inside the production possibilities curve.
 d. depends on the preferences of that society.

Question 2

If there is currently an inflationary gap, an increase in aggregate demand will make the inflationary gap smaller, but a decrease in aggregate demand would make the inflationary gap larger.
 a. True
  b. False
  Indicate whether the statement is true or false

[bpool94]

Answer to Question 1

d

Answer to Question 2

False

[ts19998]

TYSM

[Alyson.hiatt@yahoo.com]

Thanks for the timely response, appreciate it