The principle of comparative advantage helps explain trade between nations.
Answer the following statement true (T) or false (F)
True
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Refer to Figure 17-1. Suppose that the economy is currently at point A on the short-run Phillips curve in the figure above, and the unemployment rate at A is the natural rate
If the economy was to move to point C, which of the following must be true? A) Equilibrium GDP at point C must be above potential GDP. B) The Fed conducted contractionary policy to cause the move. C) The Fed sold treasury bills to cause the move. D) The economy is producing a level of GDP equal to potential GDP. E) Aggregate demand must have decreased.
Provide four reasons for the changes observed in per-pupil spending during the latter half of the twentieth century
What will be an ideal response?
A point inside a production possibilities curve indicates
A. resources are not being used efficiently. B. an output combination that is unobtainable with the current resource and technology levels C. resources are being used very efficiently. D. opportunity costs are constant.
For which of the following pairs of goods would most people likely have convex indifference curves?
A) nickels and dimes B) left shoes and right shoes C) movie tickets and concert tickets D) None of the above.