If the money wage and other resource prices do not change when the price level rises by 10%...
What will be an ideal response?
there is movement along the short-run aggregate supply curve
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Secondary effects are consequences of economic actions that develop slowly over time as people react to events
a. True b. False
Country X and Country Y produce scud missiles and wheat. Country X has a comparative advantage in the production of scud missiles while Country Y has a comparative advantage in wheat. Present an argument f or and against free trade between these two countries
Suppose that Chloe opens a dog grooming business in a local shopping center. Which of the following would be an example of a factor of production used by Chloe? (i) her employees' time (ii) brushes, combs, scissors, and clippers (iii) shampoo, water, and flea prevention treatments (iv) Chloe's time spent on bookkeeping and bill paying
a. (i) only b. (i) and (ii) only c. (i), (ii), and (iii) only d. (i), (ii), (iii), and (iv)
Assuming the free flow of capital across borders, if country A wants to fix its exchange rate with country B, then:
A. country A's monetary policy will not be able to be used to address domestic issues. B. country A's monetary policy must be conducted so the inflation rate in country A matches the inflation rate in country B. C. country A's inflation rate will have to match country B's. D. all of the answers given are correct.