The level of GDP, ceteris paribus, will tend to increase when:
A. Reserve requirements are increased
B. There is an increase in the discount rate
C. The Federal Reserve buys government securities in the open market
D. The Federal Reserve sells government securities in the open market
C. The Federal Reserve buys government securities in the open market
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Trade theory suggests that Japan would gain from a subsidy the United States provides its grain farmers if the gains to Japanese consumers of wheat products more than offsets the losses to Japanese wheat farmers. This would occur as long as Japan
A) is a net importer in bilateral trade flows with the United States. B) is a net importer of wheat. C) has a comparative advantage in wheat. D) has an absolute advantage in producing wheat. E) is involved in intra-industry trade with the United States.
The number of unskilled workers employed before and after a change in the minimum wage is found to be the same. This means
A) the minimum wage change did not affect the unskilled labor market. B) nothing, unless we also know that the number of hours worked by each worker has not changed. C) the minimum wage could be below the equilibrium wage for unskilled labor. D) either b or c E) none of the above