Refer to the information provided in Figure 2.4 below to answer the question(s) that follow. Figure 2.4According to Figure 2.4, a decrease in unemployment may be represented by the movement from

The gains from trade creation are likely to be larger for a country if

A. the supply of the imported good by the foreigners is relatively inelastic. B. it mainly imports primary products. C. its import demand curve is relatively elastic. D. the country's government sufficiently subsidizes the production of its exportable goods.

Use the following diagram to answer the next question.Based on this diagram, we can say ________.

A. a contractionary policy is likely to be more effective than an expansionary policy B. the Fed is pursuing a contractionary monetary policy C. the Fed is pursuing an expansionary monetary policy D. an expansionary policy is likely to be more effect than a contractionary policy