There is an inverse relationship between inflation and unemployment in the short run and this can be seen as an
A. example of the equality-efficiency trade-off.
B. example of the impact of comparative advantage.
C. example of macroeconomic policy choices.
D. example of an externality.
E. example of the use of abstraction in economic analysis.
Answer: C
Economics
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The WTO and GATT promote trade by
A) reducing tariffs. B) reducing agricultural subsidies. C) eliminating quotas. D) all of the above.
Economics
Which of the following would reduce the ability of the self-correcting mechanism to direct an economy out of a recession quickly?
a. a decrease in the real rate of interest b. resource prices that are inflexible in a downward direction c. an increase in aggregate demand d. a low level of savings
Economics