The gains from free trade are enjoyed by a ________ number of people and the costs of free trade are imposed by ________ number of people
A) small; large
B) large; small
C) small; small
D) large; large
B
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Expectations about future profitability
A) only affect the level of investment and GDP in the future. B) only affect the level of investment in the future, but can affect the level of GDP in the present. C) can affect the level of investment and GDP in the present. D) only affect the level of GDP in the future, but can affect the level of investment in the present.
In the traditional Keynesian model, if the government cuts current taxes
A) the C + I + G + X line will shift down but the aggregate demand curve will not shift. B) the C + I + G + X line will shift down and the aggregate demand curve will shift to the left. C) the C + I + G + X line will shift up and the aggregate demand curve will shift to the right. D) the C + I + G + X line will shift up but the aggregate demand curve will not shift.