(5 points) State whether each of the following statements are True or False. If

Question

(5 points) State whether each of the following statements are True or False. If the statement is false, please state why it is false.

a) An increase in Real GDP means that the Production Possibility Curve must move outward.

b) There is no cost to the macroeconomy of current consumption.

c) Increased Capacity Utilization means that the PPF is moving outward.

d) Gross Investment being greater than the amount of capital depreciated will help lead to Economic Growth, ceteris paribus.

e) Spending money on increases in human capital shifts the PPF outward, ceteris paribus.

Explanation / Answer

a) True as production of goods increases due to increase in the real GDP so PPC shifts rightwards.

b) False as consumption affect the aggregate demand so it will lead to change in aggregate supply which affects the cost of the economy.

c) True

d) True

e) True

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.