The alternative combinations of goods and services that can be produced in a given time period with available resources and technology is referred to as
Multiple Choice
real GDP.
the production possibilities.
nominal GDP.
the business cycle.
the production possibilities.
The correct answer is "the production possibilities."
The correct answer is "the production possibilities." The production possibilities refer to all the different combinations of goods and services that can be produced within a given time period, using the available resources and technology. These combinations represent the alternative options for production and form the basis of understanding the trade-offs and choices that need to be made in an economy. To arrive at this answer, you can eliminate the other options:
- Real GDP refers to the value of all final goods and services produced in an economy, adjusted for inflation, so it is not the correct answer.
- Nominal GDP refers to the value of all final goods and services produced in an economy, without adjusting for inflation, so it is also not the correct answer.
- The business cycle refers to the fluctuations in economic activity, including periods of expansion and contraction, but it does not directly relate to the different combinations of goods and services that can be produced, so it is not the correct answer.