Aggregate output and the interest rate are ________ related to government spending and are ________ related to taxes
A) positively; positively
B) positively; negatively
C) negatively; positively
D) negatively; negatively
B
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The fundamental force driving international trade is comparative _______
A. advantage: a country exports those goods that have high prices B. abundance: the country that produces more than it needs exports the good C. advantage: the country with the lower opportunity cost of production exports the good D. cost: a country trades with other countries that produce cheaper goods
Some economists argue that unemployment compensation increases the natural rate of unemployment because it increases the amount of time people spending finding new work while without work
Additionally, it makes unemployment more visible with the steady growth in urbanization. Indicate whether the statement is true or false