In the 1970s and 1980s, the United States lost its comparative advantage in consumer electronics goods to Japan. What factor was most responsible for the development of Japan's comparative advantage in consumer electronics goods?
A) Japanese firms benefited from external economies.
B) Japan has abundant supplies of natural resources needed to produce electronics goods.
C) Japanese firms excelled in process technology.
D) Japan has abundant supplies of labor.
C
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Which of the following is true of the aggregate supply curve?
a. It shows the inverse relationship between prices and national output. b. It shows the positive relationship between the price level and the supply of all goods produced in the economy. c. It shows the amount of real GDP consumed at different price levels. d. It is a negatively sloped curve that shows the relationship between the price level and the cost of production of firms in the economy. e. It shows the positive relationship between price and quantity supplied of an individual good.
When the crowding-out effect of an increase in government purchases is included in the analysis:
a. AD shifts left, but by more than the simple multiplier analysis would imply. b. AD shifts left, but by less than the simple multiplier analysis would imply. c. AD shifts right, but by more than the simple multiplier analysis would imply. d. AD shifts right, but by less than the simple multiplier analysis would imply.