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    Exam 18: Extending the Analysis of Aggregate Supply
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    Refer to the Graph Above
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Refer to the Graph Above

Question 116

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 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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