The short-run Phillips curve is
A) U-shaped.
B) vertical at the natural unemployment rate.
C) upward sloping.
D) downward sloping.
E) horizontal at the expected inflation rate.
D
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What are the factors that affect GDP according to the aggregate production function used by Solow?
What will be an ideal response?
What is gained when people engage in specialization and trade?
A) Specialization and trade allow people to consume outside their individual production possibilities frontiers. B) Specialization and trade allow people to consume at a point on their production possibilities frontiers. C) Specialization and trade allow people to produce outside their individual production possibilities frontiers. D) Specialization and trade allow people to consume inside their production possibilities frontiers. E) There are no gains from specialization and trade.
Refer to the graph shown. Which point has an elasticity less than 1?
A. A B. B C. C D. D
Trade diversion is one reason that some economists:
a. believe we should not even other to promote free trade. b. recommend we change our focus from regional trade agreements to the WTO, a multilateral trade agreement. c. recommend we reinstate some tariffs that were actually beneficial to all nations. d. think we should exclude low-wage nations from trade agreements.