Once a nation has been producing a good or service for some time,
a. its supply curve for that product is vertical
b. its supply curve for that product is horizontal at the world price
c. it often develops a comparative advantage in producing that good or service
d. its moves along its production possibilities frontier and produces more of it
e. its production possibilities frontier shifts outward
C
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Public policies
a. may be able to improve either economic efficiency or equality. b. may be able to improve economic efficiency but cannot improve equality. c. may be able to improve equality but cannot improve economic efficiency. d. cannot improve either equality or economic efficiency.
When the AD curve is relatively flat
A. only monetary policy can be used to increase output. B. only fiscal policy can be used to increase output. C. both fiscal policy and monetary policy can be used to increase output. D. neither fiscal policy nor monetary policy can be used to increase output.