If Aggregate Output Is Increasing

question 80

Multiple Choice

If aggregate output is increasing,

• A)both b and e
• B)tax revenue decreases
• C)automatic stabilizers will tend to increase the size of the deficit
• D)automatic stabilizers will tend to decrease the size of the deficit
• E)transfer payments increase as fewer people become eligible for public assistance

---

Definitions:

Better Technology

Improvements or advancements in technology that increase efficiency or productivity.

Concave Production Possibilities Curve

A graphical representation indicating increasing opportunity costs as more of one good is produced, resulting in a bowed-out shape.

Economic Resources

These are the assets, materials, and inputs used to produce goods and services, including labor, capital, and natural resources.

Opportunity Costs

The value of the foregone alternative when a decision is made; essentially, the cost of choosing one option over another.