In the table above, country A is producing 4 units of X and 8 units of Y and country B is producing 4 units of X and 6 units of Y. Regarding the production of good X
A) country A has an absolute advantage.
B) country B has an absolute advantage.
C) country A has a comparative advantage.
D) country B has a comparative advantage.
D
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Cyclical unemployment is equal to zero when:
A. actual GDP and potential GDP are equal. B. there is no recessionary gap. C. there is no expansionary gap. D. frictional unemployment equals structural unemployment.
In the short run, there is a direct relationship between:
a. the actual price level and nominal GDP, other things constant. b. the profits and potential output supplied, other things constant. c. the cost of production and the actual profit earned by firms, other things constant. d. the actual price level and real GDP supplied, other things constant.
The Phillips curve represents the trade-off between:
a. output and interest rates. b. inflation and expected inflation. c. output and unemployment. d. inflation and unemployment.
Studies in the last 30 years have shown that in highly concentrated industries __________ are seldom lowered, while similar studies of labor unions indicate that _________ cuts are seldom accepted.
Fill in the blank(s) with the appropriate word(s).