Inflationary gaps lead to rising unemployment and rising inflation.

Prior to the Uruguay Round agreement, the GATT was criticized because

A) it had no mechanism for enforcing its rules. B) prominent segments of world trade, including trade in agriculture and services, were not covered by GATT rules. C) member countries could veto GATT rulings not in their interests. D) All of the above.

People would not choose to specialize because:

A. it can lead to more consumption than being self-sufficient. B. it can lead to consumption beyond the production possibilities frontier. C. it allows people to acquire goods at a lower opportunity cost. D. production standards are harder to control if goods are imported from other countries.