If by international treaty the ratio of the price of services to the price of goods was held at 1.5, then
Suppose Canada can produce either 120 units of goods, 80 units of services, or any linear combination thereof. Mexico can produce 90 units of goods, 50 units of services, or any linear combination thereof.
a) neither country would benefit from trade
b) both countries will benefit from trade
c) only Canada would benefit from trade; Mexico would lose
d) only Mexico would benefit from trade; Canada would lose
e) Mexico would benefit from trade; Canada would neither gain nor lose
e) Mexico would benefit from trade; Canada would neither gain nor lose
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Advocates of flexible exchange rates claim that under flexible exchange rates, a currency
A) appreciation caused by increasing the money supply would reduce unemployment by lowering the relative price of domestic products. B) depreciation caused by increasing the money supply would increase unemployment by lowering the relative price of domestic products. C) depreciation caused by increasing the money supply would reduce unemployment by lowering the relative price of domestic products. D) depreciation caused by increasing the money supply would reduce unemployment by increasing the relative price of domestic products. E) depreciation cause by decreasing the money supply would not effect unemployment, but would increase the relative price of domestic products.
All of the following aim to reduce income inequality EXCEPT
A) Social Security payments. B) earned income tax credits. C) regressive taxes. D) food stamp programs.
Which of the following events would shift money demand to the left?
a. an increase in the price level b. a decrease in the price level c. an increase in the interest rate d. a decrease in the interest rate
Refer to the accompanying figure.
Based on the Keynesian cross diagram, at short-run equilibrium output autonomous expenditure equals ________ and induced expenditure equals ________.
A. 3,000; 4,000 B. 4,000; 2,000 C. 1,000; 4,000 D. 1,000; 3,000