Using Figure 3 above, suppose that the economy was at Y1. This level of GDP would be considered:
A. a long run level of output.
B. a natural rate of output.
C. recessionary.
D. inflationary.
Answer: C
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The ratio at which a country can trade its exports for imports from other countries is called comparative advantage
Indicate whether the statement is true or false
In the long run, price elasticities of demand are usually ____
a. less than they are in the short run because people can adjust b. the same as they are in the short run because tastes don't change c. greater than they are in the short run because prices rise over time d. less than they are in the short run because real prices fall over time e. greater than they are in the short run because consumers have time to adjust
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A. for a person without AIDS, there are no substitutes. B. the cure would be more expensive. C. the vaccine would be more expensive. D. for a person without AIDS, there is a freely available substitute-monogamy with an unaffected partner.