Refer to Figure 17-2. Suppose the Fed used contractionary policy to push short-run equilibrium to point C. If the short-run equilibrium remained at point C long enough,
A) the economy would move back to point A.
B) the economy would stay at point C in the long run.
C) the short-run Phillips curve would shift down.
D) the short-run Phillips curve would shift up.
C
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Which of the following is false?
a. Once a country has a comparative advantage in producing a good, that comparative advantage will always continue. b. If you can mow the lawn at home faster than your younger brother, you have a comparative advantage over him in mowing the lawn. c. Restrictions on trade will reduce people's degree of specialization according to comparative advantage d. As practice at producing what you have a comparative advantage in makes you better at it, your comparative advantage would tend to increase.
Suppose Susan can wash three windows per hour or she can iron six shirts per hour. Paul can wash two windows per hour or he can iron five shirts per hour
a. Susan has an absolute advantage over Paul in washing windows. b. Susan has a comparative advantage over Paul in washing windows. c. Paul has a comparative advantage over Susan in ironing shirts. d. All of the above are correct.
A firm whose production process exhibits constant returns to scale would find that if it doubled all of its inputs, its output would ________.
A. less than double B. remain constant C. more than double D. double
The fastest growing economy between 1870 and 1979 was
A. the United Kingdom. B. the United States. C. Japan. D. Brazil.