Economies of scale are an important determinant of comparative advantage based trade
Indicate whether the statement is true or false
FALSE
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Assume the output market adjusts more rapidly than the asset market. A point of disequilibrium that is below both AA and DD will therefore initially result in
A) an increase in output. B) a decrease in output. C) a contraction of the money supply. D) a depreciation of the home currency. E) an appreciation of the home currency.
If real money demand doubles while the nominal money supply is unchanged, what happens to the price level?
A) The price level increases by a factor of four. B) The price level doubles. C) The price level is unchanged. D) The price level falls by one-half.
A country has a comparative advantage in producing a good when it has the lowest opportunity cost of producing that good
a. True b. False Indicate whether the statement is true or false
Investment is considered to be negatively correlated with current real GDP
a. True b. False Indicate whether the statement is true or false