Which of the following will be least effective in dealing with the structural adjustment problems?
A. A fall in domestic labor costs
B. Trade restrictions that raise foreign goods prices
C. A rise in foreign labor costs
D. A fall in foreign goods prices
Answer: D
Economics
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The three business cycle models differ mostly in their treatment of ________
A) aggregate demand B) short-run aggregate supply C) long-run aggregate supply D) productivity shocks
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Are there impediments to international movement of labor and capital?
a. Yes, but they apply to labor only, capital mobility is almost completely free. b. Yes, although these apply to capital, and not to labor. c. Yes, there are significant (often prohibitive) restrictions on labor and capital mobility. d. No, these have been removed with the passage of recent trade legislation.
Economics