The consumption possibilities frontier shows a nation's possible combinations of labor and capital resources that are used for specializing in the production of the comparative advantage good
Indicate whether the statement is true or false
false
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According to this Application, over the past few years there has been a ________ increase in ________ of automobile parts from outside the United States and Canada
A) large; imports B) large; exports C) small; imports D) small; exports
Explain dynamic and defensive open market operations. What is the purpose of each type? Describe two situations when defensive open market operations are used. How are defensive open market operations typically conducted?
What will be an ideal response?
During the early 1980s the changes that occurred in inflation and unemployment rates
A. suggest that disinflation can occur only if unemployment increases significantly. B. support the notion of a stable Phillips curve. C. suggest that both inflation and unemployment can be consistently reduced by dramatically increasing interest rates.
Assume that policy makers are pursuing a fixed exchange rate regime. Now suppose that the foreign interest rate increases. Discuss what policy makers must do to maintain the pegged exchange rate. Also discuss what effect this will have on domestic output and net exports
What will be an ideal response?