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

Question

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

Quizplus · Accepted Answer

The Answer of  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