As the economy recovers from a recession, we should expect that demand for
a. inferior goods will fall and demand for non-inferior goods will rise
b. all goods will rise
c. inferior goods will rise and demand for non-inferior goods will fall
d. all goods will fall
e. complements will fall
A
Economics
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Suppose that all countries eliminate their barriers to trade. The HeckscherOhlin model predicts that:
a. wages should become more equal throughout the world. b. wages should become more unequal throughout the world. c. the volume of international trade should fall. d. there should be increased migration of labor among countries.
Economics
An increase in money supply causes the real interest rate to ________ and the price level to ________ in general equilibrium
A) rise; rise B) remain unchanged; fall C) remain unchanged; rise D) fall; fall
Economics