Expansionary monetary policy causes a ________ the MP curve and a ________ the aggregate demand curve
A) movement to the right along; shift to the right of
B) downward shift of; shift to the right of
C) movement to the left along; movement down along
D) upward shift of; shift to the right of
B
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Using the HO model, assume that the United States is capital abundant and Mexico is labor abundant. If soybeans are capital intensive and avocados are labor intensive,
A) Mexico will produce more soybeans once trade is introduced. B) the United States will produce more avocados once trade is introduced. C) avocado prices in the United States will fall once trade begins. D) soybean prices in Mexico will rise once trade begins.
Unemployment compensation payments:
a. fall during periods of prosperity and thus reduce federal budget deficits. b. fall during periods of prosperity and thus increase federal budget deficits. c. fall during recessions and thus increase the problem of unemployment. d. rise during periods of prosperity and thus increase federal budget deficits. e. rise during recessions and thus increase the problem of unemployment.