Inflation will
A) increase aggregate demand.
B) increase the quantity of real GDP demanded.
C) decrease aggregate demand.
D) decrease the quantity of real GDP demanded.
Answer: D
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Which type of unemployment is most likely to lead unemployed workers to retrain or relocate?
A) cyclical B) forced C) structural D) frictional E) search
The figure above shows the demand for fruit snacks. Which movement reflects how consumers would react to an increase in the price of a fruit snack that is expected to occur in the future?
A) from point a to point e B) from point a to point b C) from point a to point c D) from point a to point d
The Ricardian model of comparative advantage lends support to the argument that
A) trade tends to worsen the conditions of unskilled labor in rich countries. B) trade tends to worsen the conditions of owners of capital in rich countries. C) trade tends to worsen the conditions of workers in poor countries. D) trade tends to worsen the conditions of workers in rich countries. E) trade is mutually beneficial to the countries that engage in it.
If a nation has "cheap labor,"
a. it can still benefit from trade. b. other nations can still compete with it. c. it cannot have a comparative advantage in everything. d. All of the above are true.