Refer to the Graph Above

question 116

Multiple Choice

Refer to the graph above. An expansion of the economy's production possibilities can, by itself:

• A) Never cause inflation
• B) Never cause price level to fall
• C) Cause a decrease in real output
• D) Cause a decrease in employment level

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Definitions:

Inspiratory Capacity (IC)

The maximum amount of air that can be inhaled after a normal exhalation.

Tidal Volume (TV)

The amount of air that is inhaled or exhaled during normal breathing at rest.

Inspiratory Capacity (IC)

The maximum volume of air that can be inhaled after a normal exhalation, measured to assess lung function.

Spirometer

A device used to measure the volume of air inhaled and exhaled by the lungs.