Which of the following factors can result in a nation developing a comparative advantage?
a. an abundance of highly skilled labor.
b. large amounts of unskilled labor.
c. a favorable climate.
d. All of these.
d. All of these.
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Suppose there is an increase in the money supply, but that people's demand for money balances increases by a greater amount at the same time. The net effect would be
A) lower interest rates, greater real GDP, and a higher price level as aggregate demand increases because of the indirect effect of the increase in the money supply. B) no change in aggregate demand or aggregate supply. C) a lower price level in the long run. D) an increase in aggregate demand due to the increase in the money supply, but a decrease in aggregate supply due to the increase in the demand for money.
Describe how the Fed uses open market operations to change short-term and long-term interest rates
What will be an ideal response?