An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock.
B. negative supply side shock.
C. positive demand side shock.
D. positive supply side shock.
Answer: B
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What facts would proponents of an expansion of NAFTA (e.g., to include all of Central and South American countries) need to marshall in order to convince you?
One reason for the extraordinary growth of foreign financial markets is
A) decreased trade. B) increases in the pool of savings in foreign countries. C) the recent introduction of the foreign bond. D) slower technological innovation in foreign markets.
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a. Japan. b. Germany. c. Canada. d. Great Britain. e. theUnited States.
Comparative advantage is related most closely to which of the following?
a. output per hour b. opportunity cost c. efficiency d. bargaining strength in international trade