Which of the following will most likely accompany an unanticipated increase in aggregate demand?
a. an increase in real output
b. an increase in unemployment
c. a decrease in real GDP
d. a decrease in the demand for resources
A
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An example of technological development is to increase output through
a. raising pay. b. working longer hours. c. hiring more workers. d. using better machines.
The two-country, multi-product model differs from the two-country, two-product model in that, in the former
A) the relative wage ratio will determine the pattern of trade ( which good is exported by which country. B) which country will export which product is determined entirely by labor productivity data. C) full specialization is likely to hold in equilibrium. D) none of the goods are potentially nontraded. E) domestic relative prices are not relevant.
Both country 1 and country 2 are located on their respective production possibilities frontiers (PPFs) for consumer goods and capital goods, but country 1 produces twice the output of both types of goods compared to country 2. It follows that
A) country 1's PPF lies further to the right than country 2's PPF. B) country 1 has a smaller population than country 2. C) country 1 has a bigger population than country 2. D) country 1 is efficient and country 2 is inefficient. E) none of the above
A country with a comparative advantage in producing computer chips
A. Has greater capacity to produce computer chips, given its resources, than do its trading partners. B. Has a lower opportunity cost of producing computer chips than its trading partners. C. Can produce computer chips with fewer resources than its trading partners. D. Can achieve better terms of trade in selling computer chips than its trading partners.