Over the past decade, the demand for goods produced in China has brought a sustained increase in demand for China's exports that has out-stripped the growth of supply. As a result, China has experienced a _______
A. period of stable prices and sustained economic growth
B. rising price level and demand-pull inflation
C. rising price level and cost-push inflation
D. rising price level and a falling real wage rate
B Aggregate demand has increased far more than aggregate supply, so the price level has risen and the economy has had a demand-pull inflation.
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Which of the following is correct? Whenever the monetary authority pegs the interest rate,
a. it must be ready to adjust the interest rate on demand. b. the monetary authority must exchange money for bonds on demand. c. it has control of the quantity of money. d. None of the above
For each bottle of wine that Italy produces, it gives up the opportunity to make 10 pounds of cheese. France gives up the opportunity to produce of 1 bottle of wine for every 25 pounds of cheese it produces. Which of the following is true about the
comparative advantage between the two countries? A) Italy has the comparative advantage in cheese. B) Italy has the comparative advantage in wine. C) France has the comparative advantage in wine and cheese. D) France has the comparative advantage in wine.