Refer to Table 2-19. Which of the following statements is true?
A) Betty has an absolute advantage in making benches and Wilma in making statues.
B) Wilma has an absolute advantage in making both products.
C) Betty has an absolute advantage in making both products.
D) Betty has an absolute advantage in making statues and Wilma in making benches.
C
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Along the aggregate production function, as the quantity of labor rises, real GDP
A) rises. B) falls. C) stays the same. D) may fall, rise, or stay the same.
Monetary policy can
A) shift the short-run trade-off between inflation and unemployment if it affects expected inflation. B) shift the long-run trade-off between inflation and unemployment through changes in cyclical unemployment. C) shift both the short-run and long-run trade-offs between inflation and unemployment if changes in policy are credible. D) shift neither the short-run nor long-run Phillips curve trade-offs between inflation and unemployment.