Refer to the graph. 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.

Question

Refer to the graph. 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.

Quizplus · Accepted Answer

The Answer of  Refer to the graph. 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