Given the Republic of Korea's experience, what can we conclude about comparative advantage?
What will be an ideal response?
It can change over time. More skill and more capital can be developed as income rises, changing productivity.
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When the price level falls from 135 to 120, the aggregate level of GDP supplied falls from $140 billion to $125 billion. This ________ relationship represents the ________ relationship between GDP and the price level
A) positive; long-run B) negative; short-run C) negative; long-run D) positive; short-run
The New York Stock Exchange handles only about 10 percent of all stock market transactions in the United States.
Answer the following statement true (T) or false (F)
If the MPC is .80, then a change in disposable income of $60 billion will lead to an initial change in consumption of
a. $30 billion. b. $42 billion. c. $48 billion. d. $60 billion. e. $70 billion.
In a simple economy (no government sector), the equilibrium level of GDP will be less than the full employment level of income if, at the full employment level of income, the
a. saving that consumers want to do is less than investing that businesses want to do. b. saving that consumers want to do is greater than investing that businesses want to do. c. saving that consumers want to do is less than spending that consumers want to do. d. inventories are being depleted.