To protect themselves from the effects of inflation, lenders try to estimate the expected rate of inflation.

How does Gordon integrate the exogenous factors affecting economic growth into the production function for an economy?

A) Y = A(G,R,H) F(K,P,T,N) B) Y = A(G,P,T) F(K,R,H,N) C) Y = A(G,P,T,R) F(K,H,N) D) Y = A(P,T,K) F(G,R,H,N)

Free trade causes job losses in industries in which a country does not have a comparative advantage, but it also causes job gains in industries in which the country has a comparative advantage

a. True b. False Indicate whether the statement is true or false