The gains from specialization in international trade accrue strictly from the principle of absolute advantage

Explain the differences between commodity money, representative commodity money, and partially backed representative commodity money

What will be an ideal response?

Refer to Figure 12.1. Suppose the economy is initially at full employment with real GDP equal to potential GDP, and the expected inflation rate equal to the actual inflation rate

If the economy then experiences a negative demand shock, and the Fed responds to the results of the demand shock with an appropriate monetary policy, the Fed response will A) push the economy further down the Phillips curve, lowering the inflation rate further. B) push the economy back up the Phillips curve, raising the inflation rate towards its full-employment level. C) push the economy back down the Phillips curve, lowering the inflation rate towards its full-employment level. D) push the economy further up the Phillips curve, lowering the inflation rate further.