The movement of the budget line from BB to bb in the figure suggests that income has:
A. increased and the price of X has decreased.
B. fallen and the price of Y has increased.
C. fallen and the price of Y has decreased.
D. decreased, but there have been no price changes.
B. fallen and the price of Y has increased.
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Suppose that Brazil is capital abundant and Chile is natural resource abundant. If timber is natural resource intensive and computers are capital intensive, then according to the Heckscher-Ohlin Theorem, Chile should export goods that
A) intensively use labor input. B) intensively use capital input. C) intensively use natural resources. D) use capital and labor in about equal proportions.
An adverse supply shock shifts the production function curve ________ and the labor demand curve ________
A) upward, upward B) upward, downward C) downward, upward D) downward, downward
_____ occurs when mothers are trying to re-enter the workforce after a long break for child birth
a. Frictional unemployment b. Structural unemployment c. Seasonal unemployment d. Cyclical unemployment
Based on the figure below. An economy is currently in long-run equilibrium at point B, at an inflation rate of ?', which is too high for to sustain economic growth. If an anti-inflationary policy is enacted, the economy will be in short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________. 
A. B; C B. A; C C. B; A D. A; B