The benefits to trading nations based on comparative advantage accrue from:
A) Specialization only
B) Specialization and trading
C) Trading only
D) Protection of domestic industries
Ans: B) Specialization and trading
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In the Keynesian model, a $1 billion increase in autonomous consumption leads to ________ in short-run equilibrium output.
A. a $1 billion decrease B. a $1 billion increase C. no change D. a greater than $1 billion increase
Which of the following correctly describes "frictional unemployment"?
A) Frictional unemployment falls in recessions and rises in expansions. B) Frictional unemployment occurs mainly during recessions. C) Frictional unemployment includes only people who are job losers. D) Frictional unemployment is a normal occurrence in a growing economy. E) Frictional unemployment includes only people who are job leavers.
Since reserve requirements on time and savings deposits were phased out in the early 1990s,
a. only the M1 money multiplier is affected by increases in time and savings deposits. b. only the M2 money multiplier is affected by increases in time and savings deposits. c. neither the M1 nor the M2 money multipliers are affected by increases in time and savings deposits. d. both the M1 and M2 money multipliers are affected by increases in time and savings deposits.
How is the value of a good determined?
What will be an ideal response?