In cases of extreme annual inflation, such as in thousands of percent or higher, people are no longer willing to hold currency or accept it from others
a. True
b. False
A
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Suppose in Belgium, the opportunity cost of producing a trombone is 8 clarinets. In Denmark, the opportunity cost of producing a trombone is 6 clarinets
a. What is the opportunity cost of producing a clarinet for Belgium? b. What is the opportunity cost of producing a clarinet for Denmark? c. Which country has a comparative advantage in the production of clarinets? d. Which country has a comparative advantage in the production of trombones?
Which of the following schematics most accurately represents economic fluctuations during a business cycle?
A) Shock -> Spending response by households and firms -> Multiplier effect -> Change in real GDP B) Shock -> Multiplier effect -> Spending response by households and firms -> Change in real GDP C) Shock -> Multiplier effect -> Change in real GDP -> Spending response by households and firms D) Shock -> Change in real GDP -> Spending response by households and firms -> Multiplier effect
If the demand curve shifts but the supply curve does not and price remains the same, supply must be perfectly inelastic
a. True b. False
It is impossible to have economic growth unless a country or a region has abundant natural resources to sustain the growth
a. True b. False Indicate whether the statement is true or false