The vertical long-run Phillips curve
a. indicates the permanent unemployment rate
b. indicates the unemployment rate at the optimal level of GDP
c. is only one of several vertical curves that together are called interest rate targets
d. indicates the economy's natural rate of unemployment
e. is more socially desirable than a horizontal Phillips curve would be
D
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Refer to the tables. Assume that before specialization and trade, Latalia produced combination C and Trombonia produced combination B. If these two nations now specialize completely based on comparative advantage, the total gains from specialization and trade will be:
Answer the question on the basis of the following production possibilities tables for two countries, Latalia and Trombonia:
A. 4 tons of beans.
B. 1 ton of pork and 2 tons of beans.
C. 4 tons of pork.
D. 2 tons of pork and 4 tons of beans.
When there are economies of scope between products, selling off an unprofitable subsidiary could lead to:
A. a major reduction in costs. B. a major reduction in sales. C. only a minor reduction in costs. D. only a minor reduction in sales.