Refer to Table 9-9
a. Which country has an absolute advantage in the production of both light bulbs and flash drives?
b. Which country has a comparative advantage in the production of light bulbs?
c. Which country has a comparative advantage in the production of flash drives?
Table 9-10
Pens Pencils
Tran 40 160
Farah 50 150
Table 9-10 shows the output per week for pens and pencils by Tran and Farah.
a. Neither country has an absolute advantage in the production of both products.
b. Mexico has a comparative advantage in the production of light bulbs.
c. Canada has a comparative advantage in the production of flash drives.
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The Federal Reserve System controls the money supply primarily through
A. open market operations. B. accounting operations. C. reserve requirement changes. D. jawboning.
In the long run, an increase in productivity would cause output to ________ and the aggregate price level to ________
A) fall; rise B) fall; fall C) rise; fall D) rise; rise
Unlike the Bank of Canada, the Bank of France, the Bank of England, and other central banks in democratic market economies, the Federal Reserve System is owned by the government
Indicate whether the statement is true or false
Suppose individuals now believe that there will be an increase in the future expected interest rate. This increase in the expected future interest rate will cause which of the following to occur in the current period?
A) an upward shift of the LM curve B) a leftward shift of the IS curve C) the IS curve to become flatter D) the LM curve to become steeper E) none of the above