The main advantage of trade between two countries is that
A. employment in both countries will increase.
B. trade will lead to a more equitable distribution of income in both countries.
C. both countries have consumption choices beyond their current resource and production constraints.
D. trade makes both countries more self-sufficient.
Answer: C
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Ceteris paribus, which of the following causes demand to be more elastic with respect to price?
A. Shorter periods of time to adjust to a change in price. B. Fewer substitutes. C. A high ratio of price to income. D. A steeper demand curve for a given price and quantity.
Refer to the information provided in Figure 23.5 below to answer the question(s) that follow.
Figure 23.5Refer to Figure 23.5. Aggregate saving is -100 billion when aggregate income is ________ billion.
A. -$50 B. $400 C. $800 D. $900
At full employment, actual ________ equals ________
A) real GDP; potential GDP B) real GDP; nominal GDP C) unemployment; zero D) potential GDP; nominal GDP E) nominal GDP; potential GDP
The unemployment rate in the United States increased from 5% in December 2007 to 9.9% in December 2009
Was this almost doubling of the unemployment rate due to cyclical, frictional, or structural reasons, and did the increase in unemployment change the natural rate of unemployment?