7. Suppose an economy produces two goods, military and civilian goods. A move from one point of the production possibilities boundary to a point outside the boundary could be caused by a an improvement in the government's ability to control its spending b. a reallocation of resources from military to civilian goods. c. an increase in the labour supply. d. the employment of previously idle resources. 8. Suppose that in 2018, Canada Cars Corporation produced $20 million worth of cars and trucks but was able to sell only $16 million worth. Is the remaining $4 million increase in inventories part of GDP for 20187 1. Yes. since changes in inventories are part of consumption expenditures. 2. Yes. since they are part of the economy's output in 2018. 3. Yes.since changes in inventories are part of actual investment a both 1 and 2 b. 2 only c. both 2 and 3 d 1 only e. both 1 and 2 9. High interest rates might purchasing a house or car but at the same time high interest rates might saving I a discourage; encourage b. discourage, discourage c. encourage; encourage d. encourage; discourage Add shortcut 10. Everything else constant, a stronger Canadian dollar will mem a vacationing in England becomes more expensive b. vacationing in England becomes less expensive c. French cheese becomes more expensive