It would be appropriate to use expansionary fiscal policy during prolonged periods of

Suppose Brazil has a comparative advantage over other countries in producing almonds, but other countries have an absolute advantage over Brazil in producing almonds. If trade in almonds is allowed, Brazil

a. will import almonds. b. will export almonds. c. will either import almonds or export almonds, but it is not clear from the given information. d. would have nothing to gain either from exporting or importing almonds.

Figure 8.4 depicts demand and costs for a monopolistically competitive firm. If the firm's demand curve shifts to the left as more firms enter the market:

A. the firm's average cost will be higher at the new profit-maximizing output level. B. the firm's average cost will be lower at the new profit-maximizing output level. C. the firm's average cost will remain the same at the new profit-maximizing output level. D. There is not sufficient information.