Which of the following can be concluded from the relationships given below?(U.K. capital stock) < (rest of the world's capital stock)(U.K. labor supply) > (rest of the world's labor supply)
A. The rest of the world will export both commodities.
B. The rest of the world will export labor-intensive goods.
C. The United Kingdom is relatively labor-abundant compared to the rest of the world.
D. The United Kingdom is relatively capital-abundant compared to the rest of the world.
Answer: C
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Which group is responsible for the policy decision of changing the money supply?
A. Federal Open Market Committee B. Federal Advisory Council C. Office of Management and Budget D. Thrift Advisory Council
Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower