# 2017 Econ Mcq

A production possibilities curve that is concave to the origin (bowed out) implies that as more of a good is produced, the opportunity cost

A
remains constant
B
decreases
C
decreases at first and then increases
D
increases
E
increases at first and then decreases
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In the long run, government subsidies that promote the development of technology with widespread business applications will have which of the following effects?

A
A negative supply shock and lower price level
B
A negative supply shock and lower economic growth rate
C
A positive supply shock and lower price level
D
A positive supply shock and lower economic growth rate
E
A lower aggregate demand and lower price level
Which of the following will happen if a country's government reduces business taxes?
A
The short-run Phillips curve will shift to the right.
B
The short-run aggregate supply curve will shift to the right.
C
The long-run aggregate supply curve will shift to the left.
D
The aggregate demand curve will shift to the left.
E
The demand curve for loanable funds will shift to the left.
If policy makers use fiscal policy to reduce inflation, which of the following will most likely happen in the short run?
A
The unemployment rate will decrease.
B
The unemployment rate will increase.
C
The real interest rate will increase.
D
The nominal interest rate will increase.
E
The economy will remain at the natural rate of unemployment.