Nations specialize in production and engage in international trade in order to:
A. Protect domestic consumers and producers
B. Increase output and income
C. Improve transportation
D. Increase employment
B. Increase output and income
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Which of the following models imply that a decrease in the money supply reduces unemployment temporarily but not permanently?
a. both the long-run Phillips curve and the aggregate supply and aggregate demand model. b. the aggregate demand and aggregate supply model, but not the long-run Phillips curve. c. the long-run Phillips curve, but not the aggregate demand and aggregate supply model. d. neither the long-run Phillips curve nor the aggregate supply and aggregate demand model.
Perfectly competitive firms produce up to the point where the price of the good equals the marginal cost of producing the last unit. This condition is referred to as
A) productive efficiency. B) constant returns to scale. C) allocative efficiency. D) perfectly competitive efficiency.