If ________ equilibrium output ________, the price level decreases.

Which of the following explains why the Fed is able to have a dramatic effect on aggregate demand and real output in the short run?

A. price confusion that speeds up the adjustment of real GDP B. money illusion that speeds up the adjustment of the price level C. sticky prices that slow the adjustment of the price level D. sticky wages that slow the adjustment of real GDP

Use national demand and supply curves to show (a) the incentives for trade to begin between nations. (b) the effect on the likely pattern of trade of a change in technology in A that causes A's national supply curve to shift out

(c) the effect on the likely pattern of trade of a change in tastes in B in favor of good S.