The Phillips curve is a statistical relationship that was misrepresented as showing
a. disequilibrium outcomes of uncoordinated policy.
b. alternative equilibrium points that the economy could achieve.
c. the unemployment rates necessary to close a recessionary gap.
d. the increases in interest rates from different inflation rates.
b
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The short-run macro model
a. relies on the market-clearing assumption b. is used primarily for long-run analysis c. is used primarily for short-run analysis d. focuses on the supply of and demand for resources e. focuses on fluctuations in the financial markets to explain fluctuations in real GDP
Refer to the data below. Which of the following statements about the two nations is correct based on the principle of comparative advantage?
Answer the following question on the basis of the data given for two regions, East and West, of a hypothetical world. The nations have the production possibilities for units of food and clothing given below.
A. East should specialize in the production of food
B. West has a comparative advantage in the production of clothing
C. West has a comparative advantage in the production of food
D. West should specialize in the production of clothing