-The Figure Above Shows the Production Possibilities Frontier for a Country.In

question 39

Multiple Choice

-The figure above shows the production possibilities frontier for a country.In order for it to move from producing at point A to producing at point B,the country would need to

• A) decrease SUV production by 1 million.
• B) decrease SUV production by 3 million.
• C) decrease SUV production by 4 million.
• D) decrease compact car production by 3 million.
• E) acquire more resources and/or more advanced technology.

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Definitions:

Inflation

The swell in the general price range for goods and services, shrinking the buying power of consumers.

Deflation

A decrease in the general price level of goods and services, often accompanied by a reduction in the money supply and credit.

Mildest Recession

A period of economic downturn that is less severe in terms of duration and decrease in GDP compared to typical recessions.

Strongest Recovery

The phase in an economic cycle where an economy experiences the most rapid and robust return to growth following a downturn.