It is possible for one country to have a comparative advantage in the production of all products
a. True
b. False
B
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Which of the following assumptions is found in Friedman's model but not in the new classical model?
A) Supply of labor depends on expected real wage. B) Workers gradually adapt their expectations of the price level to the actual price level. C) imperfect information D) market-clearing labor market
Economic stagnation and recession result in unemployment and poverty
a. True b. False Indicate whether the statement is true or false
According to the model of supply and demand, an increase in the price of milk will cause a
A. leftward shift in the supply for milk. B. rightward shift in the supply for cheese. C. rightward shift in the demand for cheese. D. leftward shift in the supply for cheese.
The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.