Which of the Following Would Most Likely Shift the Production

question 108

Multiple Choice

Which of the following would most likely shift the production possibilities curve inward?

• A) an increase in the production of capital goods
• B) an increase in the number of hours factories are in use
• C) technological progress
• D) a decrease in the average number of hours worked per week

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Definitions:

Nominal Interest Rate

The stated interest rate on a loan or financial product, not adjusted for inflation, reflecting the actual rate charged or paid.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the true cost of borrowing or the true return on savings.

Real Interest Rate

The interest rate that accounts for inflation, indicating the actual cost of borrowing and the genuine return for lenders or investors.

Dollar Amounts

Refers to monetary values expressed in terms of the U.S. dollar, important for financial reporting and transactions.