The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A
B. recessionary; C
C. recessionary; B
D. expansionary; A
Answer: D
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Starting from an autarky (no-trade) situation with Heckscher-Ohlin model, if Country H is relatively labor abundant, then once trade begins
A) wages should rise and rents should fall in H. B) wages and rents should rise in H. C) wages and rents should fall in H. D) wages should fall and rents should rise in H. E) rent will be unchanged but wages will rise in H.
When price is above the equilibrium level, competitive price cutting will continue as long as quantity supplied exceeds quantity demanded
a. True b. False Indicate whether the statement is true or false
A mixed strategy is most useful:
A. in simultaneous games. B. only when the outcome is random. C. in both sequential and simultaneous games. D. in sequential games.
Which would you rather have? a) $10,000, 20 years from now at 4% interest or b) $10,000 7 years from now if the interest rate is 12%.
What will be an ideal response?