Suppose that a country has a comparative advantage in agricultural products. When trade occurs, the nominal and real prices of the agricultural good will:
a. both fall.
b. both rise.
c. both remain constant.
d. The nominal price will fall and the real price will rise.
Ans: b. both rise.
Economics
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GDP has various shortcomings in measuring well-being. Which of the following is not one of these?
A. the value of leisure B. the harm from pollution C. the cost of crime and other social problems D. the production of intermediate goods
Economics
Under Keynesian analysis, aggregate demand can be written as
A) Yad = C + I + G + NX. B) Yad = C + I + G - NX. C) Yad = C - I - G - NX. D) Yad = C + I - G - NX.
Economics