An economy operating inefficiently is graphed as a point ______ the production possibilities curve.

MacDougall compared export ratios and labor productivity ratios for the United States and the United Kingdom in order to test the

A) classical theory. B) the Heckscher-Ohlin theory. C) the Linder hypothesis. D) All of the above.

Within the framework of the Keynesian model,

a. changes in output rather than changes in prices direct the economy to equilibrium. b. changes in prices rather than changes in output direct the economy to equilibrium. c. changes in interest rates and resource prices will direct the economy to equilibrium. d. the economy will continually be in equilibrium.